Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Mar. 01, 2014 | Apr. 11, 2014 | Aug. 31, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'RITE AID CORP | ' | ' |
Entity Central Index Key | '0000084129 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 1-Mar-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--03-01 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $3,137,147,179 |
Entity Common Stock, Shares Outstanding | ' | 971,797,750 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $146,406 | $129,452 |
Accounts receivable, net | 949,062 | 929,476 |
Inventories, net | 2,993,948 | 3,154,742 |
Prepaid expenses and other current assets | 195,709 | 195,377 |
Total current assets | 4,285,125 | 4,409,047 |
Property, plant and equipment, net | 1,957,329 | 1,895,650 |
Other intangibles, net | 431,227 | 464,404 |
Other assets | 271,190 | 309,618 |
Total assets | 6,944,871 | 7,078,719 |
Current liabilities: | ' | ' |
Current maturities of long-term debt and lease financing obligations | 49,174 | 37,311 |
Accounts payable | 1,292,419 | 1,384,644 |
Accrued salaries, wages and other current liabilities | 1,165,859 | 1,156,315 |
Total current liabilities | 2,507,452 | 2,578,270 |
Long-term debt, less current maturities | 5,632,798 | 5,904,370 |
Lease financing obligations, less current maturities | 75,171 | 91,850 |
Other noncurrent liabilities | 843,152 | 963,663 |
Total liabilities | 9,058,573 | 9,538,153 |
Commitments and contingencies | ' | ' |
Stockholders' deficit: | ' | ' |
Common stock, par value $1 per share; 1,500,000 shares authorized; shares issued and outstanding 971,331 and 904,268 | 971,331 | 904,268 |
Additional paid-in capital | 4,468,149 | 4,280,831 |
Accumulated deficit | -7,515,848 | -7,765,262 |
Accumulated other comprehensive loss | -37,334 | -61,369 |
Total stockholders' deficit | -2,113,702 | -2,459,434 |
Total liabilities and stockholders' deficit | 6,944,871 | 7,078,719 |
Preferred Stock-Series G | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock | ' | 1 |
Total stockholders' deficit | ' | 1 |
Preferred Stock-Series H | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock | ' | 182,097 |
Total stockholders' deficit | ' | $182,097 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 971,331,000 | 904,268,000 |
Common stock, shares outstanding | 971,331,000 | 904,268,000 |
Preferred Stock-Series G | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, liquidation value (in dollars per share) | $100 | $100 |
Preferred stock, shares authorized | 0 | 2,000,000 |
Preferred stock, shares issued | 0 | 7 |
Preferred Stock-Series H | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, liquidation value (in dollars per share) | $100 | $100 |
Preferred stock, shares authorized | 0 | 2,000,000 |
Preferred stock, shares issued | 0 | 1,821,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | $6,597,459 | $6,357,732 | $6,278,165 | $6,293,057 | $6,455,245 | $6,237,847 | $6,230,884 | $6,468,287 | $25,526,413 | $25,392,263 | $26,121,222 |
Costs and expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of goods sold | ' | 4,711,743 | 4,557,066 | 4,461,804 | 4,472,066 | 4,407,482 | 4,426,526 | 4,520,463 | 4,719,516 | 18,202,679 | 18,073,987 | 19,327,887 |
Selling, general and administrative expenses | ' | 1,716,671 | 1,632,299 | 1,602,931 | 1,609,261 | 1,682,332 | 1,612,198 | 1,618,169 | 1,688,066 | 6,561,162 | 6,600,765 | 6,531,411 |
Lease termination and impairment charges | ' | 17,270 | 1,672 | 11,390 | 10,972 | 36,567 | 14,366 | 7,783 | 12,143 | 41,304 | 70,859 | 100,053 |
Interest expense | ' | 101,992 | 102,819 | 106,716 | 113,064 | 127,408 | 128,371 | 129,054 | 130,588 | 424,591 | 515,421 | 529,255 |
Loss on debt retirements, net | ' | ' | 271 | 62,172 | ' | 122,660 | ' | ' | 17,842 | 62,443 | 140,502 | 33,576 |
Gain on sale of assets, net | ' | 412 | -9,331 | -1,885 | -5,180 | 2,491 | -6,262 | -2,954 | -10,051 | -15,984 | -16,776 | -8,703 |
Total costs and expenses | ' | 6,548,088 | 6,284,796 | 6,243,128 | 6,200,183 | 6,378,940 | 6,175,199 | 6,272,515 | 6,558,104 | 25,276,195 | 25,384,758 | 26,513,479 |
Income (loss) before income taxes | ' | 49,371 | 72,936 | 35,037 | 92,874 | 76,305 | 62,648 | -41,631 | -89,817 | 250,218 | 7,505 | -392,257 |
Income tax expense (benefit) | ' | -6,006 | 1,388 | 2,210 | 3,212 | -46,782 | 777 | -2,866 | -61,729 | 804 | -110,600 | -23,686 |
Net income (loss) | ' | 55,377 | 71,548 | 32,827 | 89,662 | 123,087 | 61,871 | -38,765 | -28,088 | 249,414 | 118,105 | -368,571 |
Computation of income (loss) attributable to common stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | 55,377 | 71,548 | 32,827 | 89,662 | 123,087 | 61,871 | -38,765 | -28,088 | 249,414 | 118,105 | -368,571 |
Accretion of redeemable preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | -77 | -102 | -102 |
Cumulative preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,318 | -10,528 | -9,919 |
Conversion of Series G and H preferred stock | -25,603 | ' | ' | ' | ' | ' | ' | ' | ' | -25,603 | ' | ' |
Income (loss) attributable to common stockholders-basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,416 | 107,475 | -378,592 |
Add back-interest on convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,456 | ' | ' |
Income (loss) attributable to common stockholders-diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | $220,872 | $107,475 | ($378,592) |
Basic income (loss) per share (in dollars per share) | ' | $0.06 | $0.05 | $0.03 | $0.10 | $0.14 | $0.07 | ($0.05) | ($0.03) | $0.23 | $0.12 | ($0.43) |
Diluted income (loss) per share (in dollars per share) | ' | $0.06 | $0.04 | $0.03 | $0.09 | $0.13 | $0.07 | ($0.05) | ($0.03) | $0.23 | $0.12 | ($0.43) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net income (loss) | $249,414 | $118,105 | ($368,571) |
Defined benefit pension plans: | ' | ' | ' |
Amortization of prior service cost, net transition obligation and net actuarial losses included in net periodic pension cost | 24,035 | -8,735 | -22,492 |
Total other comprehensive income (loss) | 24,035 | -8,735 | -22,492 |
Comprehensive income (loss) | $273,449 | $109,370 | ($391,063) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Preferred Stock-Series G | Preferred Stock-Series H |
In Thousands, except Share data, unless otherwise specified | |||||||
BALANCE at Feb. 26, 2011 | ($2,211,367) | $890,297 | $4,281,623 | ($7,514,796) | ($30,142) | $1 | $161,650 |
BALANCE (in shares) at Feb. 26, 2011 | ' | 890,297,000 | ' | ' | ' | ' | 1,616,000 |
Increase (Decrease) in Stockholders' Deficit | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -368,571 | ' | ' | -368,571 | ' | ' | ' |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Changes in Defined Benefit Plans | -22,492 | ' | ' | ' | -22,492 | ' | ' |
Comprehensive income (loss) | -391,063 | ' | ' | ' | ' | ' | ' |
Exchange of restricted shares for taxes | -1,102 | -970 | -132 | ' | ' | ' | ' |
Exchange of restricted shares for taxes (in shares) | ' | -970,000 | ' | ' | ' | ' | ' |
Issuance of restricted stock | ' | 9,195 | -9,195 | ' | ' | ' | ' |
Issuance of restricted stock (in shares) | ' | 9,195,000 | ' | ' | ' | ' | ' |
Cancellation of restricted stock | ' | -731 | 731 | ' | ' | ' | ' |
Cancellation of restricted stock (in shares) | ' | -731,000 | ' | ' | ' | ' | ' |
Amortization of restricted stock balance | 5,406 | ' | 5,406 | ' | ' | ' | ' |
Stock-based compensation expense | 10,456 | ' | 10,456 | ' | ' | ' | ' |
Stock options exercised | 914 | 896 | 18 | ' | ' | ' | ' |
Stock options exercised (in shares) | ' | 896,000 | ' | ' | ' | ' | ' |
Dividends on preferred stock | ' | ' | -9,919 | ' | ' | ' | 9,919 |
Dividends on preferred stock (in shares) | ' | ' | ' | ' | ' | ' | 99,000 |
BALANCE at Mar. 03, 2012 | -2,586,756 | 898,687 | 4,278,988 | -7,883,367 | -52,634 | 1 | 171,569 |
BALANCE (in shares) at Mar. 03, 2012 | ' | 898,687,000 | ' | ' | ' | ' | 1,715,000 |
Increase (Decrease) in Stockholders' Deficit | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 118,105 | ' | ' | 118,105 | ' | ' | ' |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Changes in Defined Benefit Plans | -8,735 | ' | ' | ' | -8,735 | ' | ' |
Comprehensive income (loss) | 109,370 | ' | ' | ' | ' | ' | ' |
Exchange of restricted shares for taxes | -1,408 | -1,060 | -348 | ' | ' | ' | ' |
Exchange of restricted shares for taxes (in shares) | ' | -1,060,000 | ' | ' | ' | ' | ' |
Issuance of restricted stock | ' | 5,450 | -5,450 | ' | ' | ' | ' |
Issuance of restricted stock (in shares) | ' | 5,450,000 | ' | ' | ' | ' | ' |
Cancellation of restricted stock | ' | -360 | 360 | ' | ' | ' | ' |
Cancellation of restricted stock (in shares) | ' | -360,000 | ' | ' | ' | ' | ' |
Amortization of restricted stock balance | 6,126 | ' | 6,126 | ' | ' | ' | ' |
Stock-based compensation expense | 11,588 | ' | 11,588 | ' | ' | ' | ' |
Stock options exercised | 1,646 | 1,551 | 95 | ' | ' | ' | ' |
Stock options exercised (in shares) | ' | 1,551,000 | ' | ' | ' | ' | ' |
Dividends on preferred stock | ' | ' | -10,528 | ' | ' | ' | 10,528 |
Dividends on preferred stock (in shares) | ' | ' | ' | ' | ' | ' | 106,000 |
BALANCE at Mar. 02, 2013 | -2,459,434 | 904,268 | 4,280,831 | -7,765,262 | -61,369 | 1 | 182,097 |
BALANCE (in shares) at Mar. 02, 2013 | ' | 904,268,000 | ' | ' | ' | ' | 1,821,000 |
Increase (Decrease) in Stockholders' Deficit | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 249,414 | ' | ' | 249,414 | ' | ' | ' |
Other comprehensive income (loss): | ' | ' | ' | ' | ' | ' | ' |
Changes in Defined Benefit Plans | 24,035 | ' | ' | ' | 24,035 | ' | ' |
Comprehensive income (loss) | 273,449 | ' | ' | ' | ' | ' | ' |
Exchange of restricted shares for taxes | -3,793 | -1,341 | -2,452 | ' | ' | ' | ' |
Exchange of restricted shares for taxes (in shares) | ' | -1,341,000 | ' | ' | ' | ' | ' |
Issuance of restricted stock | ' | 2,743 | -2,743 | ' | ' | ' | ' |
Issuance of restricted stock (in shares) | ' | 2,743,000 | ' | ' | ' | ' | ' |
Cancellation of restricted stock | ' | -1,212 | 1,212 | ' | ' | ' | ' |
Cancellation of restricted stock (in shares) | ' | -1,212,000 | ' | ' | ' | ' | ' |
Amortization of restricted stock balance | 6,146 | ' | 6,146 | ' | ' | ' | ' |
Stock-based compensation expense | 10,048 | ' | 10,048 | ' | ' | ' | ' |
Tax benefit from exercise of stock options and restricted stock vesting | 26,665 | ' | 26,665 | ' | ' | ' | ' |
Stock options exercised | 33,217 | 26,873 | 6,344 | ' | ' | ' | ' |
Stock options exercised (in shares) | ' | 26,873,000 | ' | ' | ' | ' | ' |
Dividends on preferred stock | ' | ' | -8,318 | ' | ' | ' | 8,318 |
Dividends on preferred stock (in shares) | ' | ' | ' | ' | ' | ' | 83,000 |
Conversion of Series G and Series H preferred stock | ' | 40,000 | 150,416 | ' | ' | -1 | -190,415 |
Conversion of Series G and Series H preferred stock (in shares) | ' | 40,000,000 | ' | ' | ' | ' | -1,904,000 |
BALANCE at Mar. 01, 2014 | ($2,113,702) | $971,331 | $4,468,149 | ($7,515,848) | ($37,334) | ' | ' |
BALANCE (in shares) at Mar. 01, 2014 | ' | 971,331,000 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net income (loss) | $249,414 | $118,105 | ($368,571) |
Adjustments to reconcile to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 403,741 | 414,111 | 440,582 |
Lease termination and impairment charges | 41,304 | 70,859 | 100,053 |
Gain from lease termination | -8,750 | ' | ' |
LIFO charge (credit) | 104,142 | -147,882 | 188,722 |
Gain on sale of assets, net | -15,984 | -16,776 | -8,703 |
Stock-based compensation expense | 16,194 | 17,717 | 15,861 |
Loss on debt retirements, net | 62,443 | 140,502 | 33,576 |
Excess tax benefit on stock options and restricted stock | -26,665 | ' | ' |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -28,051 | 82,721 | -48,781 |
Inventories | 56,557 | 130,100 | -169,935 |
Accounts payable | -100,774 | -68 | 146,302 |
Other assets and liabilities, net | -51,525 | 10,199 | -62,569 |
Net cash provided by operating activities | 702,046 | 819,588 | 266,537 |
INVESTING ACTIVITIES: | ' | ' | ' |
Payments for property, plant and equipment | -333,870 | -315,846 | -215,004 |
Intangible assets acquired | -87,353 | -67,134 | -35,133 |
Proceeds from sale-leaseback transactions | 3,989 | 6,355 | 6,038 |
Proceeds from dispositions of assets and investments | 28,416 | 30,320 | 22,930 |
Proceeds from lease termination | 8,750 | ' | ' |
Proceeds from insured loss | 15,144 | ' | ' |
Net cash used in investing activities | -364,924 | -346,305 | -221,169 |
FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of long-term debt | 1,310,000 | 2,057,263 | 822,285 |
Net (repayments to) proceeds from revolver | -265,000 | 529,000 | 108,000 |
Principal payments on long-term debt | -1,340,435 | -2,920,209 | -848,373 |
Change in zero balance cash accounts | -95 | -43,659 | -32,838 |
Net proceeds from the issuance of common stock | 33,217 | 1,646 | 914 |
Payments for the repurchase of preferred stock | -21,034 | ' | ' |
Financing fees paid for early debt redemption | -45,636 | -75,374 | -11,778 |
Excess tax benefit on stock options and restricted stock | 26,665 | ' | ' |
Deferred financing costs paid | -17,850 | -54,783 | -12,409 |
Net cash (used in) provided by financing activities | -320,168 | -506,116 | 25,801 |
Increase (decrease) in cash and cash equivalents | 16,954 | -32,833 | 71,169 |
Cash and cash equivalents, beginning of year | 129,452 | 162,285 | 91,116 |
Cash and cash equivalents, end of year | $146,406 | $129,452 | $162,285 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
1. Summary of Significant Accounting Policies | |||||||||||
Description of Business | |||||||||||
The Company is a Delaware corporation and through its 100 percent owned subsidiaries, operates retail drugstores in the United States of America. It is one of the largest retail drugstore chains in the United States, with 4,587 stores in operation as of March 1, 2014. The Company's drugstores' primary business is pharmacy services. The Company also sells a full selection of health and beauty aids and personal care products, seasonal merchandise and a large private brand product line. | |||||||||||
The Company's operations consist solely of the retail drug segment. Revenues are as follows: | |||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Pharmacy sales | $ | 17,239,436 | $ | 17,083,811 | $ | 17,725,645 | |||||
Front end sales | 8,168,922 | 8,200,022 | 8,293,643 | ||||||||
Other revenue | 118,055 | 108,430 | 101,934 | ||||||||
| | | | | | | | | | | |
$ | 25,526,413 | $ | 25,392,263 | $ | 26,121,222 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Sales of prescription drugs represented approximately 67.9%, 67.6% and 68.1% of the Company's total sales in fiscal years 2014, 2013 and 2012, respectively. The Company's principal classes of products in fiscal 2014 were the following: | |||||||||||
Product Class | Percentage | ||||||||||
of Sales | |||||||||||
Prescription drugs | 67.9 | % | |||||||||
Over-the-counter medications and personal care | 9.8 | % | |||||||||
Health and beauty aids | 5.1 | % | |||||||||
General merchandise and other | 17.2 | % | |||||||||
Fiscal Year | |||||||||||
The Company's fiscal year ends on the Saturday closest to February 29 or March 1. The fiscal year ended March 1, 2014 included 52 weeks. The fiscal year ended March 2, 2013 included 52 weeks and the fiscal year ended March 3, 2012 included 53 weeks. | |||||||||||
Principles of Consolidation | |||||||||||
The consolidated financial statements include the accounts of the Company and all of its 100 percent owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||
Cash and Cash Equivalents | |||||||||||
Cash and cash equivalents consist of cash on hand and highly liquid investments, which are readily convertible to known amounts of cash and which have original maturities of three months or less when purchased. | |||||||||||
Allowance for Uncollectible Receivables | |||||||||||
Approximately 97.0% of prescription sales are made to customers who are covered by third-party payors, such as insurance companies, government agencies and employers. The Company recognizes receivables that represent the amount owed to the Company for sales made to customers or employees of those payors that have not yet been paid. The Company maintains a reserve for the amount of these receivables deemed to be uncollectible. This reserve is calculated based upon historical collection activity adjusted for current conditions. | |||||||||||
Inventories | |||||||||||
Inventories are stated at the lower of cost or market. Inventory balances include the capitalization of certain costs related to purchasing, freight and handling costs associated with placing inventory in its location and condition for sale. The Company uses the last-in, first-out ("LIFO") cost flow assumption for substantially all of its inventories. The Company calculates its inflation index based on internal product mix and utilizes the link-chain LIFO method. | |||||||||||
Impairment of Long-Lived Assets | |||||||||||
Asset impairments are recorded when the carrying value of assets are not recoverable. For purposes of recognizing and measuring impairment of long-lived assets, the Company categorizes assets of operating stores as "Assets to Be Held and Used" and "Assets to Be Disposed Of." The Company evaluates assets at the store level because this is the lowest level of identifiable cash flows ascertainable to evaluate impairment. Assets being tested for recoverability at the store level include tangible long-lived assets and identifiable, finite-lived intangibles that arose in purchase business combinations. Corporate assets to be held and used are evaluated for impairment based on excess cash flows from the stores that support those assets. | |||||||||||
The Company reviews long-lived assets to be held and used for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows is less than the carrying amount of the asset, the Company recognizes an impairment loss. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. | |||||||||||
Property, Plant and Equipment | |||||||||||
Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. The Company provides for depreciation using the straight-line method over the following useful lives: buildings—30 to 45 years; equipment—3 to 15 years. | |||||||||||
Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. When determining the amortization period of a leasehold improvement, the Company considers whether discretionary exercise of a lease renewal option is reasonably assured. If it is determined that the exercise of such option is reasonably assured, the Company will amortize the leasehold improvement asset over the minimum lease term, plus the option period. This determination depends on the remaining life of the minimum lease term and any economic penalties that would be incurred if the lease option is not exercised. | |||||||||||
Capitalized lease assets are recorded at the lesser of the present value of minimum lease payments or fair market value and amortized over the estimated useful life of the related property or term of the lease. | |||||||||||
The Company capitalizes direct internal and external development costs associated with internal-use software. Neither preliminary evaluation costs nor costs associated with the software after implementation are capitalized. For fiscal years 2014, 2013 and 2012, the Company capitalized costs of approximately $6,547, $5,844 and $6,371, respectively. | |||||||||||
Intangible Assets | |||||||||||
The Company has certain finite-lived intangible assets that are amortized over their useful lives. The value of favorable and unfavorable leases on stores acquired in business combinations are amortized over the terms of the leases on a straight-line basis. Prescription files acquired in business combinations are amortized over an estimated useful life of ten years on an accelerated basis, which approximates the anticipated prescription file retention and related cash flows. Purchased prescription files acquired in other than business combinations are amortized over their estimated useful lives of five years on a straight-line basis. | |||||||||||
Deferred Financing Costs | |||||||||||
Costs incurred to issue debt are deferred and amortized as a component of interest expense over the terms of the related debt agreements. Amortization expense of deferred financing costs was $15,259, $21,896 and $22,049 for fiscal 2014, 2013 and 2012, respectively. | |||||||||||
Revenue Recognition | |||||||||||
For front end sales, the Company recognizes revenue from the sale of merchandise at the time the merchandise is sold. The Company records revenue net of an allowance for estimated future returns. Return activity is immaterial to revenues and results of operations in all periods presented. For third party payor pharmacy sales, revenue is recognized at the time the prescription is filled, which is or approximates when the customer picks up the prescription and is recorded net of an allowance for prescriptions that were filled but will not be picked up by the customer. For all periods presented, there is no material difference between the revenue recognized at the time the prescription is filled and that which would be recognized when the customer picks up the prescription. For cash prescriptions and patient third party payor co-payments, the Company recognizes revenue when the patient picks up the prescription and tenders the cash price or patient third party payor co-payment amount at the point of sale. Prescriptions are generally not returnable. | |||||||||||
The Company offers a chain wide loyalty card program titled wellness +. Members participating in the wellness + loyalty card program earn points on a calendar year basis for eligible front end merchandise purchases and qualifying prescriptions. One point is awarded for each dollar spent towards front end merchandise and 25 points are awarded for each qualifying prescription. | |||||||||||
Members reach specific wellness + tiers based on the points accumulated during the calendar year, which entitles such customers to certain future discounts and other benefits upon reaching that tier. For example, any customer that reaches 1,000 points in a calendar year achieves the "Gold" tier, enabling them to receive a 20% discount on qualifying purchases of front end merchandise for the remaining portion of the calendar year and also the next calendar year. There are also similar "Silver" and "Bronze" levels with lower thresholds and benefit levels. | |||||||||||
As wellness + customers accumulate points, the Company defers the value of the points earned as deferred revenue (included in other current and noncurrent liabilities, based on the expected usage). The amount deferred is based on historic and projected customer activity (e.g., tier level, spending level). As customers receive discounted front end merchandise, the Company recognizes an allocable portion of the deferred revenue. The Company deferred $103,562 as of March 1, 2014 of which $83,668 is included in other current liabilities and $19,894 is included in noncurrent liabilities. The Company deferred $100,883 as of March 2, 2013 of which $78,696 is included in other current liabilities and $22,187 is included in noncurrent liabilities. | |||||||||||
Cost of Goods Sold | |||||||||||
Cost of goods sold includes the following: the cost of inventory sold during the period, including related vendor rebates and allowances, LIFO credit or charges, costs incurred to return merchandise to vendors, inventory shrink, purchasing costs and warehousing costs, which include inbound freight costs from the vendor, distribution payroll and benefit costs, distribution center occupancy costs and depreciation expense and delivery expenses to the stores. | |||||||||||
Vendor Rebates and Allowances | |||||||||||
Rebates and allowances received from vendors relate to either buying and merchandising or promoting the product. Buying and merchandising related rebates and allowances are recorded as a reduction of cost of goods sold as product is sold. Buying and merchandising rebates and allowances include all types of vendor programs such as cash discounts from timely payment of invoices, purchase discounts or rebates, volume purchase allowances, price reduction allowances and slotting allowances. Certain product promotion related rebates and allowances, primarily related to advertising, are recorded as a reduction in selling, general and administrative expenses when the advertising commitment has been satisfied. | |||||||||||
Rent | |||||||||||
The Company records rent expense on operating leases on a straight-line basis over the minimum lease term. The Company begins to record rent expense at the time that the Company has the right to use the property. From time to time, the Company receives incentive payments from landlords that subsidize lease improvement construction. These leasehold incentives are deferred and recognized on a straight-line basis over the minimum lease term. | |||||||||||
Selling, General and Administrative Expenses | |||||||||||
Selling, general and administrative expenses include store and corporate administrative payroll and benefit costs, occupancy costs which include retail store and corporate rent costs, facility and leasehold improvement depreciation and utility costs, advertising, repair and maintenance, insurance, equipment depreciation and professional fees. | |||||||||||
Repairs and Maintenance | |||||||||||
Routine repairs and maintenance are charged to operations as incurred. Improvements and major repairs, which extend the useful life of an asset, are capitalized and depreciated. | |||||||||||
Advertising | |||||||||||
Advertising costs, net of specific vendor advertising allowances, are expensed in the period the advertisement first takes place. Advertising expenses, net of vendor advertising allowances, for fiscal 2014, 2013 and 2012 were $322,843, $335,779 and $369,405, respectively. | |||||||||||
Insurance | |||||||||||
The Company is self-insured for certain general liability and workers' compensation claims. For claims that are self-insured, stop-loss insurance coverage is maintained for workers' compensation occurrences exceeding $1,000 and general liability occurrences exceeding $2,000. The Company utilizes actuarial studies as the basis for developing reported claims and estimating claims incurred but not reported relating to the Company's self-insurance. Workers' compensation claims are discounted to present value using a risk-free interest rate. | |||||||||||
Benefit Plan Accruals | |||||||||||
The Company has several defined benefit plans, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company records expense related to these plans using actuarially determined amounts that are calculated under the provisions of ASC 715, "Compensation—Retirement Benefits." Key assumptions used in the actuarial valuations include the discount rate, the expected rate of return on plan assets and the rate of increase in future compensation levels. | |||||||||||
Stock-Based Compensation | |||||||||||
The Company has several stock option plans, which are described in detail in Note 13. The Company accounts for stock-based compensation under ASC 718, "Compensation—Stock Compensation." The Company recognizes option expense over the requisite service period of the award, net of an estimate for the impact of award forfeitures. | |||||||||||
Store Pre-opening Expenses | |||||||||||
Costs incurred prior to the opening of a new or relocated store, associated with a remodeled store or related to the opening of a distribution facility are charged against earnings when incurred. | |||||||||||
Litigation Reserves | |||||||||||
The Company is involved in litigation on an ongoing basis. The Company accrues its best estimate of the probable loss related to legal claims. Such estimates are developed in consultation with in-house counsel, and are based upon a combination of litigation and settlement strategies. | |||||||||||
Facility Closing Costs and Lease Exit Charges | |||||||||||
When a store or distribution center is closed, the Company records an expense for unrecoverable costs and accrues a liability equal to the present value at current credit adjusted risk-free interest rates of the remaining lease obligations and anticipated ancillary occupancy costs, net of estimated sublease income. Other store or distribution center closing and liquidation costs are expensed when incurred. | |||||||||||
Income Taxes | |||||||||||
Deferred income taxes are determined based on the difference between the financial reporting and tax basis of assets and liabilities. Deferred income tax expense (benefit) represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax loss and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion of the deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. | |||||||||||
The Company has net operating loss ("NOL") carryforwards that can be utilized to offset future income for federal and state tax purposes. These NOLs generate a significant deferred tax asset. The Company regularly reviews the deferred tax assets for recoverability considering historical profitability, projected taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. | |||||||||||
The Company recognizes tax liabilities in accordance with ASC 740, "Income Taxes" and the Company adjusts these liabilities with changes in judgment as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. | |||||||||||
Sales Tax Collected | |||||||||||
Sales taxes collected from customers and remitted to various governmental agencies are presented on a net basis (excluded from revenues) in the Company's statement of operations. | |||||||||||
Use of Estimates | |||||||||||
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||
Significant Concentrations | |||||||||||
The Company's pharmacy sales were primarily to customers covered by health plan contracts, which typically contract with a third party payor that agrees to pay for all or a portion of a customer's eligible prescription purchases. During fiscal 2014, the top five third party payors accounted for approximately 65.8% of the Company's pharmacy sales. The largest third party payor, Express Scripts, represented 31.6% and 35.3% of pharmacy sales during fiscal 2014 and 2013, respectively. The largest third party payor during fiscal 2012, Medco Health Solutions, represented 22.9% of pharmacy sales. Third party payors are entities such as an insurance company, governmental agency, health maintenance organization or other managed care provider, and typically represent several health care contracts and customers. | |||||||||||
During fiscal 2014, state sponsored Medicaid agencies and related managed care Medicaid payors accounted for approximately 13.7% of the Company's pharmacy sales, the largest of which was approximately 1.1% of the Company's pharmacy sales. During fiscal 2014, approximately 30.6% of the Company's pharmacy sales were to customers covered by Medicare Part D. Any significant loss of third-party payor business could have a material adverse effect on the Company's business and results of operations. | |||||||||||
During fiscal 2014, the Company purchased brand pharmaceuticals and some generic pharmaceuticals, which amounted to approximately 88.2% of the dollar volume of its prescription drugs, from a single wholesaler, McKesson Corporation ("McKesson"), under a contract that the Company amended and restated in February 2014 and now runs through March 31, 2019. Under the amended and restated contract, with limited exceptions, the Company is required to purchase all of its branded pharmaceutical products and almost all of its generic (non-brand name) pharmaceutical products from McKesson. If the Company's relationship with McKesson was disrupted, it could temporarily have difficulty filling prescriptions for brand-named and generic drugs until it executed a replacement wholesaler agreement or developed and implemented self-distribution processes. | |||||||||||
Derivatives | |||||||||||
The Company may enter into interest rate swap agreements to hedge the exposure to increasing rates with respect to its variable rate debt, when the Company deems it prudent to do so. Upon inception of interest rate swap agreements, or modifications thereto, the Company performs a comprehensive review of the interest rate swap agreements based on the criteria as provided by ASC 815, "Derivatives and Hedging." As of March 1, 2014 and March 2, 2013, the Company had no interest rate swap arrangements or other derivatives. | |||||||||||
Recent Accounting Pronouncements | |||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. ASU No. 2013-11 is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. This pronouncement will have no effect on the financial statements as the Company has historically presented uncertain tax positions in accordance with ASU No. 2013-11. | |||||||||||
In May 2013, the FASB issued a proposed Accounting Standards Update, Leases (Topic 842): a revision of the 2010 proposed Accounting Standards Update, Leases (Topic 840), that would require an entity to recognize assets and liabilities arising under lease contracts on the balance sheet. The proposed standard, as currently drafted, will have a material impact on the company's reported results of operations and financial position. | |||||||||||
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The guidance was issued in response to ASU No. 2011-05 and required disclosure of the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items of net income, if the amounts reclassified are required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period. For other amounts not required to be reclassified to net income in their entirety in the same reporting period, or when a portion of the amount is reclassified to a balance sheet account instead of directly to income or expense, a cross reference to the related footnote disclosures for additional information should be provided. The new requirements were effective prospectively for fiscal years beginning on or after December 15, 2012, and for interim periods within those fiscal years. The adoption did not have a material effect on the Company's financial statements. The Company has adopted the guidance in the first quarter of fiscal 2014 and modified the disclosures surrounding comprehensive income in Note 14, Reclassifications from Accumulated Other Comprehensive Loss. | |||||||||||
Income_Loss_Per_Share
Income (Loss) Per Share | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Income (Loss) Per Share | ' | ||||||||||
Income (Loss) Per Share | ' | ||||||||||
2. Income (Loss) Per Share | |||||||||||
Basic income (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company subject to anti-dilution limitations. | |||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Numerator for income (loss) per share: | |||||||||||
Net income (loss) | $ | 249,414 | $ | 118,105 | $ | (368,571 | ) | ||||
Accretion of redeemable preferred stock | (77 | ) | (102 | ) | (102 | ) | |||||
Cumulative preferred stock dividends | (8,318 | ) | (10,528 | ) | (9,919 | ) | |||||
Conversion of Series G and H preferred stock | (25,603 | ) | — | — | |||||||
| | | | | | | | | | | |
Income (loss) attributable to common stockholders—basic | $ | 215,416 | $ | 107,475 | $ | (378,592 | ) | ||||
Add back—interest on convertible notes | 5,456 | — | — | ||||||||
| | | | | | | | | | | |
Income (loss) attributable to common stockholders—diluted | $ | 220,872 | $ | 107,475 | $ | (378,592 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Basic weighted average shares | 922,199 | 889,562 | 885,819 | ||||||||
Outstanding options and restricted shares, net | 32,093 | 17,697 | — | ||||||||
Convertible notes | 24,800 | — | — | ||||||||
| | | | | | | | | | | |
Diluted weighted average shares | 979,092 | 907,259 | 885,819 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic income (loss) per share | $ | 0.23 | $ | 0.12 | $ | (0.43 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted income (loss) per share | $ | 0.23 | $ | 0.12 | $ | (0.43 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Due to their anti-dilutive effect, the following potential common shares have been excluded from the computation of diluted income (loss) per share as of March 1, 2014, March 2, 2013 and March 3, 2012: | |||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Stock options | 4,044 | 10,455 | 73,798 | ||||||||
Convertible preferred stock | — | 33,109 | 31,195 | ||||||||
Convertible notes | — | 24,800 | 24,800 | ||||||||
| | | | | | | | | | | |
4,044 | 68,364 | 129,793 | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Also excluded from the computation of diluted income (loss) per share as of March 1, 2014 and March 2, 2013 are restricted shares and restricted stock units of 0 and 11,506 which are included in shares outstanding. | |||||||||||
Lease_Termination_and_Impairme
Lease Termination and Impairment Charges | 12 Months Ended | |||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||
Lease Termination and Impairment Charges | ' | |||||||||||||||||||
Lease Termination and Impairment Charges | ' | |||||||||||||||||||
3. Lease Termination and Impairment Charges | ||||||||||||||||||||
Impairment Charges | ||||||||||||||||||||
The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that an asset group has a carrying value that may not be recoverable. The individual operating store is the lowest level for which cash flows are identifiable. As such, the Company evaluates individual stores for recoverability of assets. To determine if a store needs to be tested for recoverability, the Company considers items such as decreases in market prices, changes in the manner in which the store is being used or physical condition, changes in legal factors or business climate, an accumulation of losses significantly in excess of budget, a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection of continuing losses, or an expectation that the store will be closed or sold. | ||||||||||||||||||||
The Company monitors new and recently relocated stores against operational projections and other strategic factors such as regional economics, new competitive entries and other local market considerations to determine if an impairment evaluation is required. For other stores, it performs a recoverability analysis if it has experienced current-period and historical cash flow losses. | ||||||||||||||||||||
In performing the recoverability test, the Company compares the expected future cash flows of a store to the carrying amount of its assets. Significant judgment is used to estimate future cash flows. Major assumptions that contribute to its future cash flow projections include expected sales, gross profit, and distribution expenses; expected costs such as payroll, occupancy costs and advertising expenses; and estimates for other significant selling, and general and administrative expenses. Many long-term macro-economic and industry factors are considered, both quantitatively and qualitatively, in the future cash flow assumptions. In addition to current and expected economic conditions such as inflation, interest and unemployment rates that affect customer shopping patterns, the Company considers that it operates in a highly competitive industry which includes the actions of other national and regional drugstore chains, independently owned drugstores, supermarkets, mass merchandisers, dollar stores and internet pharmacies. Many of its competitors are spending significant capital and promotional dollars in certain geographies to gain market share. The Company has assumed certain sales growth from its loyalty program and other initiatives to grow sales. Recent and proposed Pharmacy Benefit Management consolidation and efforts of third party public and private payers have reduced pharmacy reimbursement rates in recent years. The Company expects this rate compression, which currently affects approximately 97% of its pharmacy business, to continue to affect it in the foreseeable future. The Company operates in a highly regulated industry and must make assumptions related to Federal and State efforts and proposals to affect the pricing and regulations related to prescription drugs, as well as, expected revenues and costs related to the Patient Protection and Affordable Care Act (health care reform). | ||||||||||||||||||||
Additionally, the Company takes into consideration that certain operating stores are executing specific improvement plans which are monitored quarterly to recoup recent capital investments, such as an acquisition of an independent pharmacy, which it has made to respond to specific competitive or local market conditions, or have specific programs tailored towards a specific geography or market. | ||||||||||||||||||||
The Company recorded impairment charges of $13,077 in fiscal 2014, $24,892 in fiscal 2013 and $51,998 in fiscal 2012. The Company's methodology for recording impairment charges has not changed materially, and has been consistently applied in the periods presented. | ||||||||||||||||||||
At March 1, 2014, $1.927 billion of the Company's long-lived assets, including intangible assets, were associated with 4,587 active operating stores. | ||||||||||||||||||||
If an operating store's estimated future undiscounted cash flows are not sufficient to cover its carrying value, its carrying value is reduced to fair value which is its estimated future discounted cash flows. The discount rate is commensurate with the risks associated with the recovery of a similar asset. | ||||||||||||||||||||
An impairment charge is recorded in the period that the store does not meet its original return on investment and/or has an operating loss for the last 2 years and its projected cash flows do not exceed its current asset carrying value. The amount of the impairment charge is the entire difference between the current asset carrying value and the estimated fair value of the assets using discounted future cash flows. Most stores are fully impaired in the period that the impairment charge is originally recorded. | ||||||||||||||||||||
The Company recorded impairment charges for active stores of $11,748 in fiscal 2014, $23,973 in fiscal 2013 and $43,353 in fiscal 2012. | ||||||||||||||||||||
The Company reviews key performance results for active stores on a quarterly basis and approves certain stores for closure. Impairment for closed stores, if any (many stores are closed on lease expiration), are recorded in the quarter the closure decision is made and approved. Closure decisions are made on an individual store or regional basis considering all of the macro-economic, industry and other factors discussed above, in addition to, the active store's individual operating results. The Company currently has no plans to close a significant number of operating stores in future periods. In the next fiscal year, the Company currently expects to close fewer than 40 stores, primarily as a result of lease expirations. The Company recorded impairment charges for closed facilities of $1,329 in fiscal 2014, $919 in fiscal 2013 and $8,645 in fiscal 2012. | ||||||||||||||||||||
Included in the impairment charges noted above, the Company recorded charges of $798 in fiscal 2014, $594 in fiscal 2013 and $5,863 in fiscal 2012 for existing owned surplus property. Assets to be disposed of are evaluated quarterly to determine if an additional impairment charge is required. Fair value estimates are provided by independent brokers who operate in the local markets where the assets are located. | ||||||||||||||||||||
The following table summarizes the impairment charges and number of locations, segregated by closed facilities and active stores that have been recorded in fiscal 2014, 2013 and 2012: | ||||||||||||||||||||
Year Ended | ||||||||||||||||||||
March 1, 2014 | March 2, 2013 | March 3, 2012 | ||||||||||||||||||
Number | Charge | Number | Charge | Number | Charge | |||||||||||||||
Closed facilities: | ||||||||||||||||||||
Actual and approved store closings | 31 | $ | 531 | 29 | $ | 325 | 55 | $ | 2,283 | |||||||||||
Actual and approved relocations | — | — | — | — | 2 | 499 | ||||||||||||||
Existing surplus properties | 7 | 798 | 5 | 594 | 12 | 5,863 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total impairment charges-closed facilities | 38 | 1,329 | 34 | 919 | 69 | 8,645 | ||||||||||||||
Active stores: | ||||||||||||||||||||
Additional current period charges for stores previously impaired in prior periods(1) | 378 | 4,162 | 469 | 5,835 | 591 | 9,822 | ||||||||||||||
Charges for new, relocated and remodeled stores that did not meet their asset recoverability test in the current period(2) | 1 | 4,028 | 14 | 9,190 | 19 | 18,926 | ||||||||||||||
Charges for the remaining stores that did not meet their asset recoverability test in the current period(3) | 17 | 3,558 | 47 | 8,948 | 53 | 14,605 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total impairment charges—active stores | 396 | 11,748 | 530 | 23,973 | 663 | 43,353 | ||||||||||||||
Total impairment charges—all locations | 434 | $ | 13,077 | 564 | $ | 24,892 | 732 | $ | 51,998 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total number of active stores | 4,587 | 4,623 | 4,667 | |||||||||||||||||
Stores impaired in prior periods with no current charge | 709 | 588 | 428 | |||||||||||||||||
Stores with a current period charge | 396 | 530 | 663 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total cumulative active stores with impairment charges | 1,105 | 1,118 | 1,091 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
These charges are related to stores that were impaired for the first time in prior periods. Most active stores, requiring an impairment charge, are fully impaired in the first period that they do not meet their asset recoverability test. However, in each prior period presented, a minority of stores were partially impaired since their fair value supported a reduced net book value. Accordingly, these stores may be further impaired in the current and future periods as a result of changes in their actual or projected cash flows, or changes to their fair value estimates. Also, the Company makes ongoing capital additions to certain stores to improve their operating results or to meet geographical competition, which if later are deemed to be unrecoverable, will be impaired in future periods. Of this total, 375, 464 and 583 stores for fiscal years 2014, 2013 and 2012 respectively have been fully impaired. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
These charges are related to new stores (open at least 3 years) and relocated stores (relocated in the last 2 years) and significant strategic remodels (remodeled in the last year) that did not meet their recoverability test during the current period. These stores have not met their original return on investment projections and have a historical loss of at least 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 1, 14 and 19 stores for fiscal years 2014, 2013 and 2012 respectively have been fully impaired. | ||||||||||||||||||||
-3 | ||||||||||||||||||||
These charges are related to the remaining active stores that did not meet the recoverability test during the current period. These stores have a historical loss of at least 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 14, 43 and 43 stores for fiscal years 2014, 2013 and 2012 respectively have been fully impaired. | ||||||||||||||||||||
The primary drivers of its impairment charges are each store's current and historical operating performance and the assumptions that the Company makes about each store's operating performance in future periods. Projected cash flows are updated based on the next year's operating budget which includes the qualitative factors noted above. The Company is unable to predict with any degree of certainty which individual stores will fall short or exceed future operating plans. Accordingly, the Company is unable to describe future trends that would affect its impairment charges, including the likely stores and their related asset values that may fail their recoverability test in future periods. | ||||||||||||||||||||
The Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy consist of the following: | ||||||||||||||||||||
• | ||||||||||||||||||||
Level 1—Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | ||||||||||||||||||||
• | ||||||||||||||||||||
Level 2—Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. | ||||||||||||||||||||
• | ||||||||||||||||||||
Level 3—Inputs to the valuation methodology are unobservable inputs based upon management's best estimate of inputs market participants could use in pricing the asset or liability at the measurement date, including assumptions about risk. | ||||||||||||||||||||
Long-lived non-financial assets are measured at fair value on a nonrecurring basis for purposes of calculating impairment using Level 2 and Level 3 inputs as defined in the fair value hierarchy. The fair value of long-lived assets using Level 2 inputs is determined by evaluating the current economic conditions in the geographic area for similar use assets. The fair value of long-lived assets using Level 3 inputs is determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest (which is Level 1). The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located. Significant increases or decreases in actual cash flows may result in valuation changes. | ||||||||||||||||||||
The table below sets forth by level within the fair value hierarchy the long-lived assets as of the impairment measurement date for which an impairment assessment was performed and total losses as of March 1, 2014 and March 2, 2013: | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Fair Values | Total | ||||||||||||||||
Active Markets | Other | Unobservable | as of | Charges | ||||||||||||||||
for Identical | Observable | Inputs (Level 3) | Impairment | March 1, 2014 | ||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | Date | ||||||||||||||||||
Long-lived assets held and used | $ | — | $ | 42 | $ | 15,051 | $ | 15,093 | $ | (12,279 | ) | |||||||||
Long-lived assets held for sale | — | 14,656 | — | 14,656 | (798 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | — | $ | 14,698 | $ | 15,051 | $ | 29,749 | $ | (13,077 | ) | |||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
Quoted Prices in | Significant | Significant | Fair Values | Total | ||||||||||||||||
Active Markets | Other | Unobservable | as of | Charges | ||||||||||||||||
for Identical | Observable | Inputs (Level 3) | Impairment | March 2, 2013 | ||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | Date | ||||||||||||||||||
Long-lived assets held and used | $ | — | $ | 1,018 | $ | 21,739 | $ | 22,757 | $ | (24,298 | ) | |||||||||
Long-lived assets held for sale | — | 1,842 | — | 1,842 | (594 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | — | $ | 2,860 | $ | 21,739 | $ | 24,599 | $ | (24,892 | ) | |||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
Lease Termination Charges | ||||||||||||||||||||
Charges to close a store, which principally consist of continuing lease obligations, are recorded at the time the store is closed and all inventory is liquidated, pursuant to the guidance set forth in ASC 420, "Exit or Disposal Cost Obligations." The Company calculates the liability for closed stores on a store-by-store basis. The calculation includes the discounted effect of future minimum lease payments and related ancillary costs, from the date of closure to the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting or favorable lease terminations. The Company evaluates these assumptions each quarter and adjusts the liability accordingly. | ||||||||||||||||||||
In fiscal 2014, 2013 and 2012, the Company recorded lease termination charges of $28,227, $45,967 and $48,055, respectively. These charges related to changes in future assumptions, interest accretion and provisions for 15 stores in fiscal 2014, 14 stores in fiscal 2013, and 23 stores in fiscal 2012. Of the approximate 40 store closures for fiscal 2015, the Company anticipates that 15 will require a store lease closing provision. | ||||||||||||||||||||
As part of its ongoing business activities, the Company assesses stores and distribution centers for potential closure. Decisions to close or relocate stores or distribution centers in future periods would result in lease termination charges for lease exit costs and liquidation of inventory, as well as impairment of assets at these locations. The following table reflects the closed store and distribution center charges that relate to new closures, changes in assumptions and interest accretion: | ||||||||||||||||||||
Year Ended | ||||||||||||||||||||
March 1, | March 2, | March 3, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | ||||||||||||||||||
Balance—beginning of year | $ | 323,757 | $ | 367,864 | $ | 405,350 | ||||||||||||||
Provision for present value of noncancellable lease payments of closed stores | 11,646 | 14,440 | 11,832 | |||||||||||||||||
Changes in assumptions about future sublease income, terminations and change in interest rates | (4,343 | ) | 9,023 | 11,305 | ||||||||||||||||
Interest accretion | 21,250 | 23,246 | 26,084 | |||||||||||||||||
Cash payments, net of sublease income | (68,040 | ) | (90,816 | ) | (86,707 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance—end of year | $ | 284,270 | $ | 323,757 | $ | 367,864 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
The Company's revenues and income (loss) before income taxes for fiscal 2014, 2013, and 2012 included results from stores that have been closed or are approved for closure as of March 1, 2014. The revenue, operating expenses and income (loss) before income taxes of these stores for the periods are presented as follows: | ||||||||||||||||||||
Year Ended | ||||||||||||||||||||
March 1, | March 2, | March 3, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Revenues | $ | 89,416 | $ | 139,082 | $ | 258,263 | ||||||||||||||
Operating expenses | 100,889 | 153,187 | 284,803 | |||||||||||||||||
Gain from sale of assets | (13,074 | ) | (19,894 | ) | (12,206 | ) | ||||||||||||||
Other (income) expenses | (8,268 | ) | 622 | (7,874 | ) | |||||||||||||||
Income (loss) before income taxes | 9,869 | 5,167 | (6,460 | ) | ||||||||||||||||
Included in these stores' income (loss) before income taxes are: | ||||||||||||||||||||
Depreciation and amortization | 607 | 1,342 | 3,038 | |||||||||||||||||
Inventory liquidation charges | 621 | 708 | 598 | |||||||||||||||||
The above results are not necessarily indicative of the impact that these closures will have on revenues and operating results of the Company in the future, as the Company often transfers the business of a closed store to another Company store, thereby retaining a portion of these revenues and operating expenses. | ||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 01, 2014 | |
Fair Value Measurements | ' |
Fair Value Measurements | ' |
4. Fair Value Measurements | |
The Company utilizes the three-level valuation hierarchy as described in Note 3, Lease Termination and Impairment Charges, for the recognition and disclosure of fair value measurements. | |
As of March 1, 2014 and March 2, 2013, the Company did not have any financial assets measured on a recurring basis. Please see Note 3 for fair value measurements of non-financial assets measured on a non-recurring basis. | |
Other Financial Instruments | |
Financial instruments other than long-term indebtedness include cash and cash equivalents, accounts receivable and accounts payable. These instruments are recorded at book value, which we believe approximate their fair values due to their short term nature. | |
The fair value for LIBOR-based borrowings under the Company's senior secured credit facility and first and second lien term loans are estimated based on the quoted market price of the financial instrument which is considered Level 1 of the fair value hierarchy. The fair values of substantially all of the Company's other long-term indebtedness are estimated based on quoted market prices of the financial instruments which are considered Level 1 of the fair value hierarchy. The carrying amount and estimated fair value of the Company's total long-term indebtedness was $5,649,732 and $6,094,285, respectively, as of March 1, 2014. The carrying amount and estimated fair value of the Company's total long-term indebtedness was $5,918,352 and $6,188,597, respectively, as of March 2, 2013. There were no outstanding derivative financial instruments as of March 1, 2014 and March 2, 2013. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
5. Income Taxes | |||||||||||
The provision for income tax expense (benefit) was as follows: | |||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Current tax: | |||||||||||
Federal | $ | — | $ | (6,305 | ) | $ | — | ||||
State | 4,748 | 7,928 | 3,654 | ||||||||
| | | | | | | | | | | |
4,748 | 1,623 | 3,654 | |||||||||
Deferred tax and other: | |||||||||||
Federal | — | (61,544 | ) | 1,729 | |||||||
State | (30,609 | ) | (50,679 | ) | (29,069 | ) | |||||
Tax expense recorded as an increase of additional paid-in-capital | 26,665 | — | — | ||||||||
| | | | | | | | | | | |
(3,944 | ) | (112,223 | ) | (27,340 | ) | ||||||
| | | | | | | | | | | |
Total income tax expense (benefit) | $ | 804 | $ | (110,600 | ) | $ | (23,686 | ) | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
A reconciliation of the expected statutory federal tax and the total income tax expense (benefit) was as follows: | |||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Expected federal statutory expense at 35% | $ | 87,576 | $ | 2,626 | $ | (137,279 | ) | ||||
Nondeductible expenses | 857 | 1,897 | 2,408 | ||||||||
State income taxes, net | 44,366 | 39,470 | 11,492 | ||||||||
Decrease of previously recorded liabilities | (21,101 | ) | (91,881 | ) | (17,771 | ) | |||||
Nondeductible compensation | 44,244 | — | — | ||||||||
Recoverable federal tax due to special 5-year NOL carryback | — | (6,305 | ) | — | |||||||
Release of indemnification asset | 5,941 | 37,324 | — | ||||||||
Indemnification receipt | — | 587 | — | ||||||||
Valuation allowance | (161,079 | ) | (94,318 | ) | 117,464 | ||||||
| | | | | | | | | | | |
Total income tax expense (benefit) | $ | 804 | $ | (110,600 | ) | $ | (23,686 | ) | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Net Income for fiscal 2014 included income tax expense of $804 resulting from an increase in the deferred tax valuation allowance for the windfall tax benefits recorded in additional paid-in capital ("APIC") pursuant to the tax law ordering approach offset by adjustments to unrecognized tax benefits due to the lapse of statute of limitations. ASC 740, "Income Taxes" requires a company to evaluate its deferred tax assets on a regular basis to determine if a valuation allowance against the net deferred tax assets is required. A cumulative loss in recent years is significant negative evidence in considering whether deferred tax assets are realizable. Based on the negative evidence, ASC 740 precludes relying on projections of future taxable income to support the recognition of deferred tax assets. | |||||||||||
Net Income for fiscal 2013 included income tax benefit of $110,600 primarily comprised of adjustments to unrecognized tax benefits for the appellate settlements of the Brooks Eckerd IRS Audit for the fiscal years 2004 - 2007 and the Commonwealth of Massachusetts Audit for fiscal years 2005 - 2007 as well as for the lapse of statute of limitations. The appellate settlements were offset by a reversal of the related tax indemnification asset which was recorded in selling, general and administrative expenses as these audits were related to pre-acquisition periods. Net loss for fiscal 2012 included income tax benefit of $23,686 and was primarily comprised of adjustments to unrecognized tax benefits due to the lapse of statute of limitations. | |||||||||||
The tax effect of temporary differences that gave rise to significant components of deferred tax assets and liabilities consisted of the following at March 1, 2014 and March 2, 2013: | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Accounts receivable | $ | 62,973 | $ | 62,745 | |||||||
Accrued expenses | 204,346 | 214,110 | |||||||||
Liability for lease exit costs | 116,803 | 142,456 | |||||||||
Pension, retirement and other benefits | 174,917 | 219,515 | |||||||||
Long-lived assets | 424,290 | 374,101 | |||||||||
Other | 1,989 | 2,079 | |||||||||
Credits | 60,951 | 62,121 | |||||||||
Net operating losses | 1,428,751 | 1,558,694 | |||||||||
| | | | | | | | ||||
Total gross deferred tax assets | 2,475,020 | 2,635,821 | |||||||||
Valuation allowance | (2,060,811 | ) | (2,223,675 | ) | |||||||
| | | | | | | | ||||
Total deferred tax assets | 414,209 | 412,146 | |||||||||
Deferred tax liabilities: | |||||||||||
Inventory | 414,209 | 412,146 | |||||||||
| | | | | | | | ||||
Total gross deferred tax liabilities | 414,209 | 412,146 | |||||||||
| | | | | | | | ||||
Net deferred tax assets | $ | — | $ | — | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefits | $ | 30,020 | $ | 247,722 | $ | 286,952 | |||||
Increases to prior year tax positions | — | 6,305 | — | ||||||||
Decreases to tax positions in prior periods | (3,215 | ) | (196,214 | ) | (11,125 | ) | |||||
Increases to current year tax positions | — | — | — | ||||||||
Settlements | — | (3,655 | ) | — | |||||||
Lapse of statute of limitations | (16,662 | ) | (24,138 | ) | (28,105 | ) | |||||
| | | | | | | | | | | |
Unrecognized tax benefits balance | $ | 10,143 | $ | 30,020 | $ | 247,722 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The amount of the above unrecognized tax benefits at March 1, 2014, March 2, 2013 and March 3, 2012 which would impact the Company's effective tax rate, if recognized, was $876, $14,651 and $83,804, respectively. Additionally, any impact on the effective rate may be mitigated by the valuation allowance that is maintained against the Company's net deferred tax assets. | |||||||||||
The Company is indemnified by Jean Coutu Group for certain tax liabilities incurred for all years ended up to and including the acquisition date of June 4, 2007, related to the Brooks Eckerd acquisition. Although the Company is indemnified by Jean Coutu Group, the Company remains the primary obligor to the tax authorities with respect to any tax liability arising for the years prior to the acquisition. Accordingly, as of March 1, 2014, March 2, 2013 and March 3, 2012, the Company had a corresponding recoverable indemnification asset of $195, $30,710 and $156,797 from Jean Coutu Group, included in the "Other Assets" line of the Consolidated Balance Sheets, to reflect the indemnification for such liabilities. | |||||||||||
While it is expected that the amount of unrecognized tax benefits will change in the next twelve months, management does not expect the change to have a significant impact on the results of operations or the financial position of the company. | |||||||||||
The Company recognizes interest and penalties related to tax contingencies as income tax expense. Prior to the adoption of ASC 740, "Income Taxes," the Company included interest as income tax expense and penalties as an operating expense. The Company recognized (benefit) for interest and penalties in connection with tax matters of ($16,833), ($43,069) and ($2,113) for fiscal years 2014, 2013 and 2012, respectively. As of March 1, 2014 and March 2, 2013 the total amount of accrued income tax-related interest and penalties was $5,364 and $22,197, respectively. | |||||||||||
The Company files U.S. federal income tax returns as well as income tax returns in those states where it does business. The consolidated federal income tax returns have been subject to examination by the IRS through fiscal 2008, including the Brooks Eckerd pre-acquisition periods. However, any net operating losses that were generated in these prior closed years may be subject to examination by the IRS upon utilization. Tax examinations by various state taxing authorities could generally be conducted for a period of three to five years after filing of the respective return. However, as a result of filing amended returns, the Company has statutes open in some states from fiscal year 2005. | |||||||||||
Net Operating Losses and Tax Credits | |||||||||||
At March 1, 2014, the Company had federal net operating loss (NOL) carryforwards of approximately $3,507,186. Of these, $1,906,013 will expire, if not utilized, between fiscal 2020 and 2022. An additional $1,519,062 will expire, if not utilized, between fiscal 2028 and 2032. | |||||||||||
At March 1, 2014, the Company had state NOL carryforwards of approximately $4,476,975, the majority of which will expire between fiscal 2019 and 2027. | |||||||||||
The Company's federal and state net operating loss carryforwards include deductions of $18,365 for windfall tax benefits that have not yet been recognized in the financial statements at March 1, 2014. These tax benefits will be credited to additional paid-in capital when they reduce current taxable income consistent with the tax law ordering approach. | |||||||||||
At March 1, 2014, the Company had federal business tax credit carryforwards of $50,595, the majority of which will expire between 2019 and 2021. In addition to these credits, the Company had alternative minimum tax credit carryforwards of $3,221. | |||||||||||
Valuation Allowances | |||||||||||
The valuation allowances as of March 1, 2014 and March 2, 2013 apply to the net deferred tax assets of the Company. The Company maintained a full valuation allowance of $2,060,811 and $2,223,675 against net deferred tax assets as a result of a three year cumulative loss at March 1, 2014 and March 2, 2013, respectively. | |||||||||||
Accounts_Receivable
Accounts Receivable | 12 Months Ended |
Mar. 01, 2014 | |
Accounts Receivable | ' |
Accounts Receivable | ' |
6. Accounts Receivable | |
The Company maintains an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable. The allowance for uncollectible accounts at March 1, 2014 and March 2, 2013 was $26,873 and $28,271 respectively. The Company's accounts receivable are due primarily from third-party payors (e.g., pharmacy benefit management companies, insurance companies or governmental agencies) and are recorded net of any allowances provided for under the respective plans. Since payments due from third-party payors are sensitive to payment criteria changes and legislative actions, the allowance is reviewed continually and adjusted for accounts deemed uncollectible by management. | |
Inventory
Inventory | 12 Months Ended |
Mar. 01, 2014 | |
Inventory | ' |
Inventory | ' |
7. Inventory | |
At March 1, 2014 and March 2, 2013, inventories were $1,018,581 and $915,241, respectively, lower than the amounts that would have been reported using the first-in, first-out ("FIFO") cost flow assumption. The Company calculates its FIFO inventory valuation using the retail method for store inventories and the cost method for distribution facility inventories. The Company recorded a LIFO charge for fiscal year 2014 of $104,142, compared to a LIFO credit of $147,882 for fiscal year 2013 and a LIFO charge of $188,722 for fiscal year 2012. During fiscal 2014, 2013 and 2012, a reduction in inventories related to working capital initiatives resulted in the liquidation of applicable LIFO inventory quantities carried at lower costs in prior years. This LIFO liquidation resulted in a $13,894, $4,316 and $11,004 cost of sales decrease, with a corresponding reduction to the adjustment to LIFO for fiscal 2014, fiscal 2013 and fiscal 2012, respectively. | |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Property, Plant and Equipment | ' | |||||||
Property, Plant and Equipment | ' | |||||||
8. Property, Plant and Equipment | ||||||||
Following is a summary of property, plant and equipment, including capital lease assets, at March 1, 2014 and March 2, 2013: | ||||||||
2014 | 2013 | |||||||
Land | $ | 233,098 | $ | 243,413 | ||||
Buildings | 753,633 | 753,952 | ||||||
Leasehold improvements | 1,890,369 | 1,733,607 | ||||||
Equipment | 2,194,339 | 2,079,372 | ||||||
Construction in progress | 69,388 | 55,013 | ||||||
| | | | | | | | |
5,140,827 | 4,865,357 | |||||||
Accumulated depreciation | (3,183,498 | ) | (2,969,707 | ) | ||||
| | | | | | | | |
Property, plant and equipment, net | $ | 1,957,329 | $ | 1,895,650 | ||||
| | | | | | | | |
| | | | | | | | |
Depreciation expense, which included the depreciation of assets recorded under capital leases, was $284,603, $286,374 and $296,792 in fiscal 2014, 2013 and 2012, respectively. | ||||||||
Included in property, plant and equipment was the carrying amount of assets to be disposed of totaling $1,887 and $14,702 at March 1, 2014 and March 2, 2013, respectively. | ||||||||
Other_Intangibles
Other Intangibles | 12 Months Ended | ||||||||||||||||
Mar. 01, 2014 | |||||||||||||||||
Other Intangibles | ' | ||||||||||||||||
Other Intangibles | ' | ||||||||||||||||
9. Other Intangibles | |||||||||||||||||
The Company's intangible assets are finite-lived and amortized over their useful lives. Following is a summary of the Company's intangible assets as of March 1, 2014 and March 2, 2013. | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross | Accumulated | Remaining | Gross | Accumulated | Remaining | ||||||||||||
Carrying | Amortization | Weighted | Carrying | Amortization | Weighted | ||||||||||||
Amount | Average | Amount | Average | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Period | Period | ||||||||||||||||
Favorable leases and other | $ | 634,320 | $ | (447,608 | ) | 9 years | $ | 623,541 | $ | (413,556 | ) | 10 years | |||||
Prescription files | 1,353,057 | (1,108,542 | ) | 4 years | 1,286,087 | (1,031,668 | ) | 4 years | |||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 1,987,377 | $ | (1,556,150 | ) | $ | 1,909,628 | $ | (1,445,224 | ) | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Also included in other non-current liabilities as of March 1, 2014 and March 2, 2013 are unfavorable lease intangibles with a net carrying amount of $62,687 and $70,195, respectively. | |||||||||||||||||
Amortization expense for these intangible assets and liabilities was $119,138, $127,737 and $143,790 for fiscal 2014, 2013 and 2012, respectively. The anticipated annual amortization expense for these intangible assets and liabilities is 2015—$105,149; 2016—$93,337; 2017—$80,052; 2018—$42,113 and 2019—$16,322. | |||||||||||||||||
Accrued_Salaries_Wages_and_Oth
Accrued Salaries, Wages and Other Current Liabilities | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Accrued Salaries, Wages and Other Current Liabilities | ' | |||||||
Accrued Salaries, Wages and Other Current Liabilities | ' | |||||||
10. Accrued Salaries, Wages and Other Current Liabilities | ||||||||
Accrued salaries, wages and other current liabilities consisted of the following at March 1, 2014 and March 2, 2013: | ||||||||
2014 | 2013 | |||||||
Accrued wages, benefits and other personnel costs | $ | 449,585 | $ | 437,222 | ||||
Accrued interest | 69,193 | 76,164 | ||||||
Accrued sales and other taxes payable | 133,357 | 132,767 | ||||||
Accrued store expense | 238,324 | 228,276 | ||||||
Other | 275,400 | 281,886 | ||||||
| | | | | | | | |
$ | 1,165,859 | $ | 1,156,315 | |||||
| | | | | | | | |
| | | | | | | | |
Indebtedness_and_Credit_Agreem
Indebtedness and Credit Agreement | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Indebtedness and Credit Agreement | ' | |||||||
Indebtedness and Credit Agreement | ' | |||||||
11. Indebtedness and Credit Agreement | ||||||||
Following is a summary of indebtedness and lease financing obligations at March 1, 2014 and March 2, 2013: | ||||||||
2014 | 2013 | |||||||
Secured Debt: | ||||||||
Senior secured revolving credit facility due February 2018 | $ | 400,000 | $ | 665,000 | ||||
Tranche 6 Term Loan due February 2020 | 1,152,293 | 1,161,000 | ||||||
8.00% senior secured notes (senior lien) due August 2020 | 650,000 | 650,000 | ||||||
7.5% senior secured notes (second lien) due March 2017 | — | 500,000 | ||||||
Tranche 1 Term Loan (second lien) due August 2020 | 470,000 | 470,000 | ||||||
Tranche 2 Term Loan (second lien) due June 2021 | 500,000 | — | ||||||
10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,160 and $1,364) | 268,840 | 268,636 | ||||||
Other secured | 5,324 | 5,298 | ||||||
| | | | | | | | |
3,446,457 | 3,719,934 | |||||||
Guaranteed Unsecured Debt: | ||||||||
9.5% senior notes due June 2017 ($810,000 face value less unamortized discount of $5,529) | — | 804,471 | ||||||
6.75% senior notes due June 2021 | 810,000 | — | ||||||
9.25% senior notes due March 2020 ($902,000 face value plus unamortized premium of $4,087 and $4,759) | 906,087 | 906,759 | ||||||
| | | | | | | | |
1,716,087 | 1,711,230 | |||||||
Unguaranteed Unsecured Debt: | ||||||||
8.5% convertible notes due May 2015 | 64,188 | 64,188 | ||||||
7.7% notes due February 2027 | 295,000 | 295,000 | ||||||
6.875% fixed-rate senior notes due December 2028 | 128,000 | 128,000 | ||||||
| | | | | | | | |
487,188 | 487,188 | |||||||
Lease financing obligations | 107,411 | 115,179 | ||||||
| | | | | | | | |
Total debt | 5,757,143 | 6,033,531 | ||||||
Current maturities of long-term debt and lease financing obligations | (49,174 | ) | (37,311 | ) | ||||
| | | | | | | | |
Long-term debt and lease financing obligations, less current maturities | $ | 5,707,969 | $ | 5,996,220 | ||||
| | | | | | | | |
| | | | | | | | |
Credit Facility | ||||||||
The Company has a senior secured credit facility that consists of a $1,795,000 revolving credit facility and a $1,152,293 senior secured term loan (the "Tranche 7 Term Loan"). Borrowings under the revolving credit facility bear interest at a rate per annum between LIBOR plus 2.25% and LIBOR plus 2.75%, if the Company chooses to make LIBOR borrowings, or between Citibank's base rate plus 1.25% and Citibank's base rate plus 1.75% in each case based upon the amount of revolver availability as defined in the senior secured credit facility. The Company is required to pay fees between 0.375% and 0.50% per annum on the daily unused amount of the revolver, depending on the amount of revolver availability. Amounts drawn under the revolver become due and payable on February 21, 2018. On March 14, 2014, the Company amended and restated its credit agreement governing its senior secured credit facility, pursuant to which, it prepaid its outstanding Tranche 6 Term Loan with the proceeds of a new $1,152,293 Tranche 7 Term Loan. The Tranche 7 Term Loan matures on February 21, 2020 and currently bears interest at a rate per annum equal to LIBOR plus 2.75%, if the Company chooses to make LIBOR borrowings, or at Citibank's base rate plus 1.75%. The Tranche 7 Term Loan is subject to a 0.75% LIBOR floor per annum. | ||||||||
The Company's ability to borrow under the revolver is based upon a specified borrowing base consisting of accounts receivable, inventory and prescription files. At March 1, 2014, the Company had $400,000 of borrowings outstanding under the revolver and had letters of credit outstanding against the revolver of $79,874, which resulted in additional borrowing capacity of $1,315,126. | ||||||||
The senior secured credit facility contains certain restrictions on the ability of the Company and the subsidiary guarantors to accumulate cash on hand, and under certain circumstances, requires the funds in the Company's deposit accounts to be applied first to the repayment of outstanding revolving loans under the senior secured credit facility and then to be held as collateral for the senior obligations. | ||||||||
The senior credit facility restricts the amount of secured and unsecured debt the Company may have outstanding. The senior secured credit facility allows the Company to incur an unlimited amount of unsecured debt with a maturity beyond May 21, 2020. However, the Company's second priority secured term loan facilities and the indentures that govern the Company's secured and guaranteed unsecured notes contain restrictions on the amount of additional secured and unsecured debt that can be incurred by the Company. Pursuant to certain of the Company's existing indentures, the Company could not incur any additional secured debt assuming a fully drawn revolver and the outstanding letters of credit. The ability to issue additional unsecured debt under the second priority secured term loan facilities and the indentures is generally governed by an interest coverage ratio test. As of March 1, 2014, the Company had the ability to issue additional unsecured debt under the second lien credit facilities and other indentures. | ||||||||
The senior secured credit facility contains additional covenants which place restrictions on the incurrence of debt, the payments of dividends, sale of assets, mergers and acquisitions and the granting of liens. The credit facility has a financial covenant, which is the maintenance of a fixed charge coverage ratio. The covenant requires that, if availability on the revolving credit facility is less than $150,000, the Company must maintain a minimum fixed charge coverage ratio of 1.00 to 1.00. As of March 1, 2014, availability under the revolving credit facility was in excess of $150,000 and our fixed charge coverage ratio was greater than 1.00 to 1.00. The senior secured credit facility also provides for customary events of default. | ||||||||
The Company also has a second priority secured term loan facility, which includes a $470,000 second priority secured term loan (the "Tranche 1 Term Loan"). The Tranche 1 Term Loan matures on August 21, 2020 and currently bears interest at a rate per annum equal to LIBOR plus 4.75%, if the Company chooses to make LIBOR borrowings, or at Citibank's base rate plus 3.75%. The Tranche 1 Term Loan is subject to a 1.00% LIBOR floor per annum. | ||||||||
On June 21, 2013, the Company entered into a new second priority secured term loan facility, which includes a $500,000 second priority secured term loan (the "Tranche 2 Term Loan"). The Tranche 2 Term Loan matures on June 21, 2021 and currently bears interest at a rate per annum equal to LIBOR plus 3.875% with a LIBOR floor of 1.00%, if the Company chooses to make LIBOR borrowings, or at Citibank's base rate plus 2.875%. | ||||||||
Substantially all of Rite Aid Corporation's 100 percent owned subsidiaries guarantee the obligations under the senior secured credit facility, second priority secured term loan facilities, secured guaranteed notes and unsecured guaranteed notes. The senior secured credit facility, second priority secured term loan facilities and secured guaranteed notes are secured, on a senior or second priority basis, as applicable, by a lien on, among other things, accounts receivable, inventory and prescription files of the subsidiary guarantors. The subsidiary guarantees related to the Company's senior secured credit facility, second priority secured term loan facilities and secured guaranteed notes and, on an unsecured basis, the unsecured guaranteed notes are full and unconditional and joint and several, and there are no restrictions on the ability of the Company to obtain funds from its subsidiaries. Also, the Company has no independent assets or operations, and subsidiaries not guaranteeing the credit facility, second priority secured term loan facilities and applicable notes are minor. Accordingly, condensed consolidating financial information for the Company and subsidiaries is not presented. | ||||||||
Other 2014 Transactions | ||||||||
In June 2013, the Company completed a tender offer for its 7.5% senior secured notes due 2017 in which $419,237 aggregate principal amount of the outstanding 7.5% notes were tendered and repurchased. In July 2013, the Company redeemed the remaining 7.5% notes for $85,154, which included the call premium and interest to the redemption date. The tender offer for, and redemption of, the 7.5% notes were funded using the proceeds from the Tranche 2 Term Loan, borrowings under the Company's revolving credit facility and available cash. | ||||||||
On July 2, 2013, the Company issued $810,000 of its 6.75% senior notes due 2021. The Company's obligations under the notes are fully and unconditionally guaranteed, jointly and severally, on an unsubordinated basis, by all of its subsidiaries that guarantee the Company's obligations under the senior secured credit facility, the second priority secured term loan facilities and the outstanding 8.00% senior secured notes due 2020, 10.25% senior secured notes due 2019 and 9.25% senior notes due 2020. The Company used the net proceeds of the 6.75% notes, borrowings under its revolving credit facility and available cash to repurchase and repay all of the Company's outstanding $810,000 aggregate principal of 9.5% senior notes due 2017. | ||||||||
In July 2013, the Company completed a tender offer for its 9.5% notes in which $739,642 aggregate principal amount of the outstanding 9.5% notes were tendered and repurchased. In August 2013, the Company redeemed the remaining 9.5% notes for $73,440, which included the call premium and interest to the redemption date. | ||||||||
In connection with these refinancing transactions, the Company recorded a loss on debt retirement, including tender and call premium and interest, unamortized debt issue costs and unamortized discount of $62,172. | ||||||||
As of March 2, 2013, Rite Aid Lease Management Company, a 100 percent owned subsidiary of the Company, had 213,000 shares of its Cumulative Preferred Stock, Class A, par value $100 per share ("RALMCO Cumulative Preferred Stock"), outstanding. The carrying amount of the RALMCO Cumulative Preferred Stock as of November 29, 2013 was $20,763 and was recorded in Other Noncurrent Liabilities. On November 29, 2013, the Company repurchased all of the outstanding RALMCO Cumulative Preferred Stock for $21,034. In connection with this transaction, the Company recorded a loss on debt retirement of $271. | ||||||||
2013 Transactions | ||||||||
In February 2013, the Company repurchased all of its outstanding $410,000 aggregate principal of 9.750% senior secured notes, $470,000 aggregate principal of 10.375% senior secured notes and $180,277 aggregate principal amount of 6.875% senior debentures. In February 2013, $257,261 aggregate principal amount of the 9.750% notes, $401,999 aggregate principal amount of the 10.375% notes and $119,119 aggregate principal amount of the 6.875% debentures, respectively, were tendered and repurchased by the Company. The Company redeemed the remaining 9.750% notes and 10.375% notes for $171,432 and $72,901, respectively, which included the call premium and interest through the redemption date. Additionally, the Company discharged the remaining 6.875% debentures for $63,416, which included interest through maturity. | ||||||||
In February 2013, the Company redeemed $6,015 aggregate principal amount of 9.25% senior notes for $6,147, which included interest through the redemption date. | ||||||||
In connection with the above transactions, the Company recorded a loss on debt retirement, including tender and call premium and interest, unamortized debt issue costs and unamortized discount of $122,660. | ||||||||
In February 2012, the Company issued $481,000 of its 9.25% senior notes and in May 2012, the Company issued an additional $421,000 of its 9.25% senior notes. The proceeds of the notes, together with available cash, were used to repurchase the 8.625% senior notes and the 9.375% senior notes, respectively. These notes are unsecured, unsubordinated obligations of Rite Aid Corporation and rank equally in right of payment with all other unsubordinated indebtedness. The Company's obligations under the notes are fully and unconditionally guaranteed, jointly and severally, on an unsubordinated basis, by all of its subsidiaries that guarantee the Company's obligations under the senior secured credit facility, the second priority secured term loan facility and the outstanding 8.00% senior secured notes, 7.5% senior secured notes, 10.25% senior secured notes and 9.5% senior notes. | ||||||||
In May 2012, the Company completed a tender offer for the 9.375% notes in which $296,269 aggregate principal amount of the outstanding 9.375% notes were tendered and repurchased. In June 2012, the Company redeemed the remaining 9.375% notes for $108,731, which included the call premium and interest through the redemption date. The May 2012 refinancing resulted in an aggregate loss on debt retirement of $17,842. | ||||||||
2012 Transactions | ||||||||
In February 2012, the Company completed a tender offer for the 8.625% notes in which $404,844 aggregate principal amount of the outstanding 8.625% notes were tendered and repurchased, resulting in an aggregate loss on debt retirement of $16,066, recorded in the fourth quarter of fiscal 2012. In March 2012, the Company redeemed the remaining 8.625% notes for $55,644, which included the call premium and interest through the redemption date. | ||||||||
During August 2011, the Company repurchased $41,000 of its 8.625% notes, $5,000 of its 9.375% notes and $4,496 of its 6.875% debentures. These repurchases resulted in a gain for the period of $4,924. | ||||||||
Interest Rates and Maturities | ||||||||
The annual weighted average interest rate on the Company's indebtedness was 6.4%, 7.1%, and 7.4% for fiscal 2014, 2013, and 2012, respectively. | ||||||||
The aggregate annual principal payments of long-term debt for the five succeeding fiscal years are as follows: 2015—$16,934; 2016—$75,798; 2017—$11,610; 2018—$411,610 and $5,130,853 in 2019 and thereafter. | ||||||||
Leases
Leases | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Leases | ' | |||||||
Leases | ' | |||||||
12. Leases | ||||||||
The Company leases most of its retail stores and certain distribution facilities under noncancellable operating and capital leases, most of which have initial lease terms ranging from 5 to 22 years. The Company also leases certain of its equipment and other assets under noncancellable operating leases with initial terms ranging from 3 to 10 years. In addition to minimum rental payments, certain store leases require additional payments based on sales volume, as well as reimbursements for taxes, maintenance and insurance. Most leases contain renewal options, certain of which involve rent increases. Total rental expense, net of sublease income of $8,369, $8,536, and $8,866, was $952,777, $951,239, and $976,892 in fiscal 2014, 2013, and 2012, respectively. These amounts include contingent rentals of $18,679, $21,026 and $22,659 in fiscal 2014, 2013, and 2012, respectively. | ||||||||
During fiscal 2014, the Company sold one owned operating store to an independent third party. Net proceeds from the sale were $3,989. Concurrent with this sale, the Company entered into an agreement to lease the store back from the purchaser over a minimum lease term of 20 years. The Company accounted for this lease as an operating lease. The transaction resulted in a gain of $269 which is included in the gain on sale of assets, net for the fifty-two weeks ended March 1, 2014. | ||||||||
During fiscal 2013, the Company sold two owned operating stores to independent third parties. Net proceeds from the sale were $6,355. Concurrent with these sales, the Company entered into agreements to lease the stores back from the purchasers over a minimum lease term of 12 to 20 years. The Company accounted for these leases as operating leases. The transactions resulted in a gain of $1,818 which is included in the gain on sale of assets, net for the fifty-two weeks ended March 2, 2013. | ||||||||
During fiscal 2012, the Company sold two owned operating stores to independent third parties. Net proceeds from the sale were $6,038. Concurrent with these sales, the Company entered into agreements to lease the stores back from the purchasers over a minimum lease term of 7 to 10 years. The Company accounted for these leases as operating leases. The transactions resulted in a loss of $3,896 which is included in the gain on sale of assets, net for the fifty-three weeks ended March 3, 2012. | ||||||||
The net book values of assets under capital leases and sale-leasebacks accounted for under the financing method at March 1, 2014 and March 2, 2013 are summarized as follows: | ||||||||
2014 | 2013 | |||||||
Land | $ | 5,063 | $ | 6,692 | ||||
Buildings | 135,581 | 137,206 | ||||||
Leasehold improvements | 1,446 | 1,691 | ||||||
Equipment | 34,305 | 21,316 | ||||||
Accumulated depreciation | (113,536 | ) | (103,381 | ) | ||||
| | | | | | | | |
$ | 62,859 | $ | 63,524 | |||||
| | | | | | | | |
| | | | | | | | |
Following is a summary of lease finance obligations at March 1, 2014 and March 2, 2013: | ||||||||
2014 | 2013 | |||||||
Obligations under financing leases | $ | 102,671 | $ | 107,308 | ||||
Sale-leaseback obligations | 4,740 | 7,876 | ||||||
Less current obligation | (32,240 | ) | (23,334 | ) | ||||
| | | | | | | | |
Long-term lease finance obligations | $ | 75,171 | $ | 91,850 | ||||
| | | | | | | | |
| | | | | | | | |
Following are the minimum lease payments for all properties under a lease agreement that will have to be made in each of the years indicated based on non-cancelable leases in effect as of March 1, 2014: | ||||||||
Fiscal year | Lease Financing | Operating | ||||||
Obligations | Leases | |||||||
2015 | $ | 40,030 | $ | 996,495 | ||||
2016 | 21,228 | 953,607 | ||||||
2017 | 19,330 | 892,261 | ||||||
2018 | 13,496 | 810,267 | ||||||
2019 | 12,370 | 713,914 | ||||||
Later years | 33,656 | 3,405,091 | ||||||
| | | | | | | | |
Total minimum lease payments | 140,110 | $ | 7,771,635 | |||||
| | | | | | | | |
| | | | | | | | |
Amount representing interest | (32,699 | ) | ||||||
| | | | | | | | |
Present value of minimum lease payments | $ | 107,411 | ||||||
| | | | | | | | |
| | | | | | | | |
Stock_Option_and_Stock_Award_P
Stock Option and Stock Award Plans | 12 Months Ended | |||||||||||||
Mar. 01, 2014 | ||||||||||||||
Stock Option and Stock Award Plans | ' | |||||||||||||
Stock Option and Stock Award Plans | ' | |||||||||||||
13. Stock Option and Stock Award Plans | ||||||||||||||
The Company recognizes share-based compensation expense in accordance with ASC 718, "Compensation—Stock Compensation." Expense is recognized over the requisite service period of the award, net of an estimate for the impact of forfeitures. Operating results for fiscal 2014, 2013 and 2012 include $16,194, $17,717 and $15,861 of compensation costs related to the Company's stock-based compensation arrangements. | ||||||||||||||
In November 1999, the Company adopted the 1999 Stock Option Plan (the 1999 Plan), under which 10,000 shares of common stock are authorized for the granting of stock options at the discretion of the Board of Directors. | ||||||||||||||
In December 2000, the Company adopted the 2000 Omnibus Equity Plan (the 2000 Plan) under which 22,000 shares of common stock are reserved for granting of restricted stock, stock options, phantom stock, stock bonus awards and other stock awards at the discretion of the Board of Directors. | ||||||||||||||
In February 2001, the Company adopted the 2001 Stock Option Plan (the 2001 Plan) which was approved by the shareholders under which 20,000 shares of common stock are authorized for granting of stock options at the discretion of the Board of Directors. | ||||||||||||||
In April 2004, the Board of Directors adopted the 2004 Omnibus Equity Plan, which was approved by the shareholders. Under the plan, 20,000 shares of common stock are authorized for granting of restricted stock, stock options, phantom stock, stock bonus awards and other equity based awards at the discretion of the Board of Directors. | ||||||||||||||
In January 2007, the stockholders of Rite Aid Corporation approved the adoption of the Rite Aid Corporation 2006 Omnibus Equity Plan. Under the plan, 50,000 shares of Rite Aid common stock are available for granting of restricted stock, stock options, phantom stock, stock bonus awards and other equity based awards at the discretion of the Board of Directors. | ||||||||||||||
In June 2010, the stockholders of Rite Aid Corporation approved the adoption of the Rite Aid Corporation 2010 Omnibus Equity Plan. Under the plan, 35,000 shares of Rite Aid common stock are available for granting of restricted stock, stock options, phantom stock, stock bonus awards and other equity based awards at the discretion of the Board of Directors. The adoption of the 2010 Omnibus Equity Plan became effective on June 23, 2010. | ||||||||||||||
In June 2012, the stockholders of Rite Aid Corporation approved the adoption of the Rite Aid Corporation 2012 Omnibus Equity Plan. Under the plan, 28,500 shares of Rite Aid common stock are available for granting of restricted stock, stock options, phantom stock, stock bonus awards and other equity based awards at the discretion of the Board of Directors. The adoption of the 2012 Omnibus Equity Plan became effective on June 21, 2012. | ||||||||||||||
All of the plans provide for the Board of Directors (or at its election, the Compensation Committee) to determine both when and in what manner options may be exercised; however, it may not be more than 10 years from the date of grant. All of the plans provide that stock options may be granted at prices that are not less than the fair market value of a share of common stock on the date of grant. The aggregate number of shares authorized for issuance for all plans is 62,103 as of March 1, 2014. | ||||||||||||||
Stock Options | ||||||||||||||
The Company determines the fair value of stock options issued on the date of grant using the Black-Scholes-Merton option-pricing model. The following weighted average assumptions were used for options granted in fiscal 2014, 2013 and 2012: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected stock price volatility(1) | 85 | % | 85 | % | 79 | % | ||||||||
Expected dividend yield(2) | 0 | % | 0 | % | 0 | % | ||||||||
Risk-free interest rate(3) | 1.45 | % | 0.71 | % | 1.45 | % | ||||||||
Expected option life(4) | 5.5 years | 5.5 years | 5.5 years | |||||||||||
-1 | ||||||||||||||
The expected volatility is based on the historical volatility of the stock price over the most recent period equal to expected life of the option. | ||||||||||||||
-2 | ||||||||||||||
The dividend rate that will be paid out on the underlying shares during the expected term of the options. The Company does not currently pay dividends on its common stock, as such, the dividend rate is assumed to be zero percent. | ||||||||||||||
-3 | ||||||||||||||
The risk free interest rate is equal to the rate available on United States Treasury zero-coupon issues as of the grant date of the option with a remaining term equal to the expected term. | ||||||||||||||
-4 | ||||||||||||||
The period of time for which the option is expected to be outstanding. The Company analyzed historical exercise behavior. | ||||||||||||||
The weighted average fair value of options granted during fiscal 2014, 2013 and 2012 was $1.91, $0.91 and $0.82, respectively. Following is a summary of stock option transactions for the fiscal years ended March 1, 2014, March 2, 2013 and March 3, 2012: | ||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Per Share | Term | |||||||||||||
Outstanding at February 26, 2011 | 74,298 | $ | 2.47 | |||||||||||
Granted | 23,200 | 1.19 | ||||||||||||
Exercised | (896 | ) | 1.02 | |||||||||||
Cancelled | (22,804 | ) | 4.31 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at March 3, 2012 | 73,798 | $ | 1.52 | |||||||||||
| | | | | | | | | | | | | | |
Granted | 12,020 | 1.32 | ||||||||||||
Exercised | (1,535 | ) | 1.06 | |||||||||||
Cancelled | (3,283 | ) | 2.08 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at March 2, 2013 | 81,000 | $ | 1.48 | |||||||||||
| | | | | | | | | | | | | | |
Granted | 4,828 | 2.76 | ||||||||||||
Exercised | (26,873 | ) | 1.24 | |||||||||||
Cancelled | (2,989 | ) | 2.46 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at March 1, 2014 | 55,966 | $ | 1.65 | 6.48 | $ | 276,320 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Vested or expected to vest at March 1, 2014 | 51,761 | $ | 1.67 | 6.38 | $ | 254,692 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at March 1, 2014 | 29,881 | $ | 1.77 | 5.27 | $ | 143,971 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
As of March 1, 2014, there was $15,251 of total unrecognized pre-tax compensation costs related to unvested stock options, net of forfeitures. These costs are expected to be recognized over a weighted average period of 2.32 years. | ||||||||||||||
Cash received from stock option exercises for fiscal 2014, 2013 and 2012 was $33,217, $1,646 and $914, respectively. The income tax benefit from stock options for fiscal 2014, 2013 and 2012 was $23,660, $0 and $0, respectively. The total intrinsic value of stock options exercised for fiscal 2014, 2013 and 2012 was $80,598, $714 and $255, respectively. | ||||||||||||||
Typically, stock options granted vest, and are subsequently exercisable in equal annual installments over a four-year period for employees. | ||||||||||||||
Restricted Stock | ||||||||||||||
The Company provides restricted stock grants to associates under plans approved by the stockholders. Shares awarded under the plans vest in installments up to three years. Beginning in fiscal 2011, stock awards granted to non-employee directors vest 80% in year one, 10% in year two and 10% in year three. Unvested shares are forfeited upon termination of employment. Following is a summary of restricted stock transactions for the fiscal years ended March 1, 2014, March 2, 2013 and March 3, 2012: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Balance at February 26, 2011 | 7,078 | $ | 1.12 | |||||||||||
Granted | 8,525 | 1.23 | ||||||||||||
Vested | (3,366 | ) | 1.11 | |||||||||||
Cancelled | (731 | ) | 1.16 | |||||||||||
| | | | | | | | |||||||
Balance at March 3, 2012 | 11,506 | $ | 1.2 | |||||||||||
| | | | | | | | |||||||
Granted | 5,450 | 1.31 | ||||||||||||
Vested | (3,917 | ) | 1.18 | |||||||||||
Cancelled | (362 | ) | 1.26 | |||||||||||
| | | | | | | | |||||||
Balance at March 2, 2013 | 12,677 | $ | 1.25 | |||||||||||
| | | | | | | | |||||||
Granted | 2,743 | 2.79 | ||||||||||||
Vested | (4,152 | ) | 1.23 | |||||||||||
Cancelled | (1,212 | ) | 1.48 | |||||||||||
| | | | | | | | |||||||
Balance at March 1, 2014 | 10,056 | $ | 1.66 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
At March 1, 2014, there was $9,155 of total unrecognized pre-tax compensation costs related to unvested restricted stock grants, net of forfeitures. These costs are expected to be recognized over a weighted average period of 1.82 years. | ||||||||||||||
The total fair value of restricted stock vested during fiscal years 2014, 2013 and 2012 was $5,098, $4,623 and $3,724, respectively. | ||||||||||||||
Reclassifications_from_Accumul
Reclassifications from Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
14. Reclassifications from Accumulated Other Comprehensive Loss | ||||||||||||||||||||
The following table summarizes the components of accumulated other comprehensive loss and the changes in balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the fiscal years ended March 1, 2014, March 2, 2013 and March 3, 2012: | ||||||||||||||||||||
March 1, | March 2, | March 3, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | ||||||||||||||||||
Defined | Accumulated | Defined | Accumulated | Defined | Accumulated | |||||||||||||||
benefit | other | benefit | other | benefit | other | |||||||||||||||
pension | comprehensive | pension | comprehensive | pension | comprehensive | |||||||||||||||
plans | loss | plans | loss | plans | loss | |||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||||
Balance—beginning of period | $ | (61,369 | ) | $ | (61,369 | ) | $ | (52,634 | ) | $ | (52,634 | ) | $ | (30,142 | ) | $ | (30,142 | ) | ||
Other comprehensive income before reclassifications | 19,211 | 19,211 | (13,767 | ) | (13,767 | ) | (24,984 | ) | (24,984 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 4,824 | 4,824 | 5,032 | 5,032 | 2,492 | 2,492 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance—end of period | $ | (37,334 | ) | $ | (37,334 | ) | $ | (61,369 | ) | $ | (61,369 | ) | $ | (52,634 | ) | $ | (52,634 | ) | ||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The following table summarizes the effects on net income (loss) of significant amounts classified out of each component of accumulated other comprehensive loss for the fiscal years ended March 1, 2014, March 2, 2013 and March 3, 2012: | ||||||||||||||||||||
Fiscal Years Ended March 1, 2014, March 2, 2013 and March 3, 2012 | ||||||||||||||||||||
Amount reclassified from | ||||||||||||||||||||
accumulated other | ||||||||||||||||||||
comprehensive loss | ||||||||||||||||||||
Details about accumulated other comprehensive loss components | March 1, | March 2, | March 3, | Affected line item in the consolidated | ||||||||||||||||
2014 | 2013 | 2012 | statements of operations | |||||||||||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | ||||||||||||||||||
Defined benefit pension plans | ||||||||||||||||||||
Amortization of unrecognized prior service cost(a) | $ | (240 | ) | $ | (240 | ) | $ | (639 | ) | Selling, general and administrative expenses | ||||||||||
Amortization of unrecognized net loss(a) | (4,584 | ) | (4,792 | ) | (1,853 | ) | Selling, general and administrative expenses | |||||||||||||
| | | | | | | | | | | | |||||||||
(4,824 | ) | (5,032 | ) | (2,492 | ) | Total before income tax expense | ||||||||||||||
— | — | — | Income tax expense(b) | |||||||||||||||||
| | | | | | | | | | | | |||||||||
$ | (4,824 | ) | $ | (5,032 | ) | $ | (2,492 | ) | Net of income tax expense | |||||||||||
| | | | | | | | | | | | |||||||||
| | | | | | | | | | | | |||||||||
(a)—See Note 15, Retirement Plans for additional details. | ||||||||||||||||||||
(b)—Income tax expense is $0 due to the valuation allowance. See Note 5, Income Taxes for additional details. | ||||||||||||||||||||
Retirement_Plans
Retirement Plans | 12 Months Ended | |||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||
15. Retirement Plans | ||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||
The Company and its subsidiaries sponsor several retirement plans that are primarily 401(k) defined contribution plans covering nonunion associates and certain union associates. The Company does not contribute to all of the plans. In accordance with those plan provisions, the Company matches 100% of a participant's pretax payroll contributions, up to a maximum of 3% of such participant's pretax annual compensation. Thereafter, the Company will match 50% of the participant's additional pretax payroll contributions, up to a maximum of 2% of such participant's additional pretax annual compensation. Total expense recognized for the above plans was $57,857 in fiscal 2014, $56,480 in fiscal 2013 and $57,036 in fiscal 2012. | ||||||||||||||||||||
The Company sponsors a Supplemental Executive Retirement Plan ("SERP") for its officers, which is a defined contribution plan that is subject to a five year graduated vesting schedule. The expense recognized for the SERP was $11,531 in fiscal 2014, $7,469 in fiscal 2013 and $4,582 in fiscal 2012. | ||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||
The Company and its subsidiaries also sponsor a qualified defined benefit pension plan that requires benefits to be paid to eligible associates based upon years of service and, in some cases, eligible compensation. The Company's funding policy for The Rite Aid Pension Plan (The "Defined Benefit Pension Plan") is to contribute the minimum amount required by the Employee Retirement Income Security Act of 1974. However, the Company may, at its sole discretion, contribute additional funds to the plan. The Company made contributions of $8,000 in fiscal 2014, $5,583 in fiscal 2013 and $14,878 in fiscal 2012. | ||||||||||||||||||||
The Company also maintains a nonqualified executive retirement plan for certain former employees who, pursuant to their employment agreements, did not participate in the SERP. The Company no longer enrolls new participants into this plan. These participants generally receive an annual benefit payable monthly over fifteen years. This nonqualified defined benefit plan is unfunded. | ||||||||||||||||||||
Net periodic pension expense and other changes recognized in other comprehensive income for the defined benefit pension plans and the nonqualified executive retirement plan included the following components: | ||||||||||||||||||||
Defined Benefit Pension Plan | Nonqualified Executive | |||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 3,341 | $ | 2,908 | $ | 2,988 | $ | — | $ | — | $ | 21 | ||||||||
Interest cost | 6,120 | 6,128 | 6,501 | 541 | 616 | 771 | ||||||||||||||
Expected return on plan assets | (6,738 | ) | (6,719 | ) | (6,192 | ) | — | — | — | |||||||||||
Amortization of unrecognized prior service cost | 240 | 240 | 639 | — | — | — | ||||||||||||||
Amortization of unrecognized net loss (gain) | 4,935 | 3,926 | 2,435 | (351 | ) | 866 | (582 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net pension expense(income) | $ | 7,898 | $ | 6,483 | $ | 6,371 | $ | 190 | $ | 1,482 | $ | 210 | ||||||||
Other changes recognized in other comprehensive loss: | ||||||||||||||||||||
Unrecognized net (gain) loss arising during period | $ | (18,860 | ) | $ | 12,901 | $ | 24,664 | $ | (351 | ) | $ | 866 | $ | 595 | ||||||
Prior service cost arising during period | — | — | (275 | ) | — | — | — | |||||||||||||
Amortization of unrecognized prior service costs | (240 | ) | (240 | ) | (639 | ) | — | — | — | |||||||||||
Amortization of unrecognized net (loss) gain | (4,935 | ) | (3,926 | ) | (2,435 | ) | 351 | (866 | ) | 582 | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net amount recognized in other comprehensive loss | (24,035 | ) | 8,735 | 21,315 | — | — | 1,177 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net amount recognized in pension expense and other comprehensive loss | $ | (16,137 | ) | $ | 15,218 | $ | 27,686 | $ | 190 | $ | 1,482 | $ | 1,387 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The table below sets forth reconciliation from the beginning of the year for both the benefit obligation and plan assets of the Company's defined benefit plans, as well as the funded status and amounts recognized in the Company's balance sheet as of March 1, 2014 and March 2, 2013: | ||||||||||||||||||||
Defined Benefit | Nonqualified Executive | |||||||||||||||||||
Pension Plan | Retirement Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||
Benefit obligation at end of prior year | $ | 158,522 | $ | 142,310 | $ | 14,332 | $ | 14,509 | ||||||||||||
Service cost | 3,341 | 2,908 | — | — | ||||||||||||||||
Interest cost | 6,120 | 6,128 | 541 | 616 | ||||||||||||||||
Distributions | (7,677 | ) | (6,644 | ) | (1,657 | ) | (1,659 | ) | ||||||||||||
Change due to change in assumptions | — | 13,979 | — | 756 | ||||||||||||||||
Actuarial (gain) loss | (11,710 | ) | (159 | ) | (351 | ) | 110 | |||||||||||||
| | | | | | | | | | | | | | |||||||
Benefit obligation at end of year | $ | 148,596 | $ | 158,522 | $ | 12,865 | $ | 14,332 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Change in plan assets: | ||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 114,773 | $ | 108,196 | $ | — | $ | — | ||||||||||||
Employer contributions | 8,000 | 5,583 | 1,655 | 1,659 | ||||||||||||||||
Actual return on plan assets | 13,888 | 9,067 | — | — | ||||||||||||||||
Distributions (including expenses paid by the plan) | (7,677 | ) | (8,073 | ) | (1,655 | ) | (1,659 | ) | ||||||||||||
| | | | | | | | | | | | | | |||||||
Fair value of plan assets at end of year | $ | 128,984 | $ | 114,773 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Funded status | $ | (19,612 | ) | $ | (43,749 | ) | $ | (12,865 | ) | $ | (14,331 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
Net amount recognized | $ | (19,612 | ) | $ | (43,749 | ) | $ | (12,865 | ) | $ | (14,331 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Amounts recognized in consolidated balance sheets consisted of: | ||||||||||||||||||||
Prepaid pension cost | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Accrued pension liability | (19,612 | ) | (43,749 | ) | (12,865 | ) | (14,331 | ) | ||||||||||||
| | | | | | | | | | | | | | |||||||
Net amount recognized | $ | (19,612 | ) | $ | (43,749 | ) | $ | (12,865 | ) | $ | (14,331 | ) | ||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||||||||||||||||||
Net actuarial loss | $ | (35,348 | ) | $ | (59,143 | ) | $ | — | $ | — | ||||||||||
Prior service cost | (307 | ) | (547 | ) | — | — | ||||||||||||||
| | | | | | | | | | | | | | |||||||
Amount recognized | $ | (35,655 | ) | $ | (59,690 | ) | $ | — | $ | — | ||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
The estimated net actuarial loss and prior service cost amounts that will be amortized from accumulated other comprehensive loss into net periodic pension expense in fiscal 2015 are $2,399 and $240, respectively. | ||||||||||||||||||||
The accumulated benefit obligation for the defined benefit pension plan was $148,596 and $158,368 as of March 1, 2014 and March 2, 2013, respectively. The accumulated benefit obligation for the nonqualified executive retirement plan was $12,865 and $14,331 as of March 1, 2014 and March 2, 2013, respectively. | ||||||||||||||||||||
The significant actuarial assumptions used for all defined benefit plans to determine the benefit obligation as of March 1, 2014, March 2, 2013 and March 3, 2012 were as follows: | ||||||||||||||||||||
Defined Benefit | Nonqualified | |||||||||||||||||||
Pension Plan | Executive | |||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.5 | % | 4 | % | 4.5 | % | 4.5 | % | 4 | % | 4.5 | % | ||||||||
Rate of increase in future compensation levels | 4.5 | % | 4.5 | % | 5 | % | N/A | N/A | 3 | % | ||||||||||
Weighted average assumptions used to determine net cost for the fiscal years ended March 1, 2014, March 2, 2013 and March 3, 2012 were: | ||||||||||||||||||||
Defined Benefit Pension Plan | Nonqualified | |||||||||||||||||||
Executive | ||||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4 | % | 4.5 | % | 5.5 | % | 4 | % | 4.5 | % | 5.5 | % | ||||||||
Rate of increase in future compensation levels | 4.5 | % | 5 | % | 5 | % | N/A | N/A | 3 | % | ||||||||||
Expected long-term rate of return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||||
To develop the expected long-term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. This resulted in the selection of the 7.75% long-term rate of return on plan assets assumption for fiscal 2014, 2013 and 2012. | ||||||||||||||||||||
The Company's pension plan asset allocations at March 1, 2014 and March 2, 2013 by asset category were as follows: | ||||||||||||||||||||
March 1, | March 2, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Equity securities | 62 | % | 60 | % | ||||||||||||||||
Fixed income securities | 38 | % | 40 | % | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
The investment objectives of the Defined Benefit Pension Plan, the only defined benefit plan with assets, are to: | ||||||||||||||||||||
• | ||||||||||||||||||||
Achieve a rate of return on investments that exceeds inflation over a full market cycle and is consistent with actuarial assumptions; | ||||||||||||||||||||
• | ||||||||||||||||||||
Balance the correlation between assets and liabilities by diversifying the portfolio among various asset classes to address return risk and interest rate risk; | ||||||||||||||||||||
• | ||||||||||||||||||||
Balance the allocation of assets between the investment managers to minimize concentration risk; | ||||||||||||||||||||
• | ||||||||||||||||||||
Maintain liquidity in the portfolio sufficient to meet plan obligations as they come due; and | ||||||||||||||||||||
• | ||||||||||||||||||||
Control administrative and management costs. | ||||||||||||||||||||
The asset allocation established for the pension investment program reflects the risk tolerance of the Company, as determined by: | ||||||||||||||||||||
• | ||||||||||||||||||||
the current and anticipated financial strength of the Company; | ||||||||||||||||||||
• | ||||||||||||||||||||
the funded status of the plan; and | ||||||||||||||||||||
• | ||||||||||||||||||||
plan liabilities. | ||||||||||||||||||||
Investments in both the equity and fixed income markets will be maintained, recognizing that historical results indicate that equities (primarily common stocks) have higher expected returns than fixed income investments. It is also recognized that the correlation between assets and liabilities must be balanced to address higher volatility of equity investments (return risk) and interest rate risk. | ||||||||||||||||||||
The following targets are to be applied to the allocation of plan assets. | ||||||||||||||||||||
Category | Target | |||||||||||||||||||
Allocation | ||||||||||||||||||||
U.S. equities | 46 | % | ||||||||||||||||||
International equities | 16 | % | ||||||||||||||||||
U.S. fixed income | 38 | % | ||||||||||||||||||
| | | | | ||||||||||||||||
Total | 100 | % | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
The Company expects to contribute $0 to the Defined Benefit Pension Plan and make payments of $1,722 to participants of the Nonqualified Executive Retirement Plan during fiscal 2015. | ||||||||||||||||||||
The following table sets forth by level within the fair value hierarchy a summary of the plan's investments measured at fair value on a recurring basis as of March 1, 2014 and March 2, 2013: | ||||||||||||||||||||
Fair Value Measurements at March 1, 2014 | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||||||
Assets (Level 1) | ||||||||||||||||||||
Equity Securities | ||||||||||||||||||||
International equity | $ | — | $ | 20,401 | $ | — | $ | 20,401 | ||||||||||||
Large Cap | — | 40,914 | — | 40,914 | ||||||||||||||||
Small-Mid Cap | — | 18,071 | — | 18,071 | ||||||||||||||||
Fixed Income | ||||||||||||||||||||
Long Term Credit Bond Index | — | 47,360 | — | 47,360 | ||||||||||||||||
Other types of investments | ||||||||||||||||||||
Short Term Investments | — | 2,239 | — | 2,239 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | — | $ | 128,985 | $ | — | $ | 128,985 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Fair Value Measurements at March 2, 2013 | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||||||
Assets (Level 1) | ||||||||||||||||||||
Equity Securities | ||||||||||||||||||||
International equity | $ | — | $ | 17,199 | $ | — | $ | 17,199 | ||||||||||||
Large Cap | — | 35,098 | — | 35,098 | ||||||||||||||||
Mid Cap | — | 12,562 | — | 12,562 | ||||||||||||||||
Small Cap | — | 4,236 | — | 4,236 | ||||||||||||||||
Fixed Income | ||||||||||||||||||||
Long Term Credit Bond Index | — | 45,664 | — | 45,664 | ||||||||||||||||
Other types of investments | ||||||||||||||||||||
Short Term Investments | — | 14 | — | 14 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | — | $ | 114,773 | $ | — | $ | 114,773 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. | ||||||||||||||||||||
Common and Collective Trusts | ||||||||||||||||||||
Common collective trust funds are stated at fair value as determined by the issuer of the common collective trust funds based on the fair market value of the underlying investments. | ||||||||||||||||||||
Following are the future benefit payments expected to be paid for the Defined Benefit Pension Plan and the nonqualified executive retirement plan during the years indicated: | ||||||||||||||||||||
Fiscal Year | Defined Benefit | Nonqualified | ||||||||||||||||||
Pension Plan | Executive | |||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2015 | $ | 7,378 | $ | 1,722 | ||||||||||||||||
2016 | 7,520 | 1,625 | ||||||||||||||||||
2017 | 7,687 | 1,599 | ||||||||||||||||||
2018 | 7,829 | 1,228 | ||||||||||||||||||
2019 | 8,068 | 1,204 | ||||||||||||||||||
2020 - 2024 | 42,793 | 4,424 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 81,275 | $ | 11,802 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Other Plans | ||||||||||||||||||||
The Company participates in various multi-employer union pension plans that are not sponsored by the Company. Total expenses recognized for the multi-employer plans were $26,617 in fiscal 2014, $19,787 in fiscal 2013 and $14,594 in fiscal 2012. | ||||||||||||||||||||
Multiemployer_Plans_that_Provi
Multiemployer Plans that Provide Pension Benefits | 12 Months Ended | |||||||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||||||
Multiemployer Plans that Provide Pension Benefits | ' | |||||||||||||||||||||||
Multiemployer Plans that Provide Pension Benefits | ' | |||||||||||||||||||||||
16. Multiemployer Plans that Provide Pension Benefits | ||||||||||||||||||||||||
The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Additionally, if the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||||||||||||||
The Company's participation in these plans for the annual period ended March 1, 2014 is outlined in the table below. The "EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three-digit plan number, if applicable. The most recent Pension Protection Act (PPA) zone status available for fiscal 2014 and fiscal 2013 is for the plan year-ends as indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. In addition to regular plan contributions, the Company may be subject to a surcharge if the plan is in the red zone. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last two columns list the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject and any minimum funding requirements. There have been no significant changes that affect the comparability of total employer contributions of fiscal years 2014, 2013, and 2012. | ||||||||||||||||||||||||
Pension Protection Act | Contributions of | Expiration | ||||||||||||||||||||||
Zone Status | the Company | Date of | ||||||||||||||||||||||
FIP/ RP | Collective- | |||||||||||||||||||||||
Status | Bargaining | |||||||||||||||||||||||
EIN/Pension | Pending/ | Surcharge | Agreement | Minimum | ||||||||||||||||||||
Plan | Implemented | Imposed | Funding | |||||||||||||||||||||
Pension | Number | 2014 | 2013 | 2014 | 2013 | 2012 | Requirements | |||||||||||||||||
1199 SEIU Health Care Employees Pension Fund | 13-3604862-001 | Green— | Green— | No | $ | 14,093 | $ | 9,830 | $ | 9,156 | No | 4/18/15 | Contribution rate of 15.8% of gross wages earned per associate. | |||||||||||
12/31/12 | 12/31/11 | |||||||||||||||||||||||
Southern California United Food and Commercial Workers Unions and Drug Employers Pension Fund | 51-6029925-001 | Red— | Red— | Implemented | 6,476 | 3,416 | 459 | No | 7/12/15 | Contributions of $1.242 per hour worked for pharmacists and $0.563 per hour worked for non pharmacists. | ||||||||||||||
12/31/13 | 12/31/12 | |||||||||||||||||||||||
Northern California Pharmacists, Clerks and Drug Employers Pension Plan | 94-2518312-001 | Green— | Green— | No | 2,900 | 2,858 | 2,937 | No | 7/13/13 | Contributions of $0.57 per hour worked for associates. | ||||||||||||||
12/31/13 | 12/31/12 | |||||||||||||||||||||||
United Food and Commercial Workers Union-Employer Pension Fund | 34-6665155-001 | Red— | Red— | Implemented | 629 | 559 | 529 | No | 12/31/14 | Contribution rate of $1.49 per hour worked. | ||||||||||||||
9/30/13 | 9/30/12 | |||||||||||||||||||||||
United Food and Commercial Workers Union Local 880—Mercantile Employers Joint Pension Fund | 51-6031766-001 | Yellow— | Yellow— | Implemented | 441 | 399 | 322 | No | 12/31/14 | Contribution rate of $1.52 per hour worked. | ||||||||||||||
9/30/13 | 9/30/12 | |||||||||||||||||||||||
Other Funds | 2,078 | 2,725 | 1,191 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
$ | 26,617 | $ | 19,787 | $ | 14,594 | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
The Company was listed in these plans Forms 5500 as providing more than 5 percent of the total contributions for the following plans and plan years: | ||||||||||||||||||||||||
Pension Fund | Year Contributions to Plan Exceeded More Than 5 Percent of | |||||||||||||||||||||||
Total Contributions (as of the Plan's Year-End) | ||||||||||||||||||||||||
Northern California Pharmacists, Clerks and Drug Employers Pension Plan | 12/31/2012 and 12/31/2011 | |||||||||||||||||||||||
Southern California United Food and Commercial Workers Unions and Drug Employers Pension Fund | 12/31/2012 and 12/31/2011 | |||||||||||||||||||||||
United Food and Commercial Workers Union- Employer Pension Fund | 9/30/2012 and 9/30/2011 | |||||||||||||||||||||||
United Food and Commercial Workers Union Local 880—Mercantile Employers Joint Pension Fund | 9/30/2012 and 9/30/2011 | |||||||||||||||||||||||
At the date the Company's financial statements were issued, certain Forms 5500 were not available. | ||||||||||||||||||||||||
During fiscal 2014, the Company incurred an additional withdrawal liability of $1,000 associated with the withdrawal from the Central Ohio Locals 1059 and 75 effective March 31, 2013. | ||||||||||||||||||||||||
During fiscal 2013, the Company withdrew from the 1360 New Jersey Pension effective August 2011 and incurred a $2,032 withdrawal liability and Central Ohio Locals 1059 and 75 effective March 31, 2013 and incurred a liability of $3,000. | ||||||||||||||||||||||||
During fiscal 2012, the Company withdrew from the NW OH Pension Fund effective December 2011 and incurred a $1,300 withdrawal liability. | ||||||||||||||||||||||||
Commitments_Contingencies_and_
Commitments, Contingencies and Guarantees | 12 Months Ended |
Mar. 01, 2014 | |
Commitments, Contingencies and Guarantees | ' |
Commitments, Contingencies and Guarantees | ' |
17. Commitments, Contingencies and Guarantees | |
Legal Matters | |
The Company is a party to legal proceedings, investigations and claims in the ordinary course of its business, including the matters described below. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. | |
The Company's contingencies are subject to significant uncertainties, including, among other factors: (i) proceedings are in early stages; (ii) whether class or collective action status is sought and the likelihood of a class being certified; (iii) the outcome of pending appeals or motions; (iv) the extent of potential damages, fines or penalties, which are often unspecified or indeterminate; (v) the impact of discovery on the matter; (vi) whether novel or unsettled legal theories are at issue; (vii) there are significant factual issues to be resolved; and/or (viii) in the case of certain government agency investigations, whether a sealed qui tam lawsuit ("whistleblower" action) has been filed and whether the government agency makes a decision to intervene in the lawsuit following investigation. | |
The Company has been named in a collective and class action lawsuit, Indergit v. Rite Aid Corporation et al pending in the United States District Court for the Southern District of New York, filed purportedly on behalf of current and former store managers working in the Company's stores at various locations around the country. The lawsuit alleges that the Company failed to pay overtime to store managers as required under the FLSA and under certain New York state statutes. The lawsuit also seeks other relief, including liquidated damages, punitive damages, attorneys' fees, costs and injunctive relief arising out of state and federal claims for overtime pay. On April 2, 2010, the Court conditionally certified a nationwide collective group of individuals who worked for the Company as store managers since March 31, 2007. The Court ordered that Notice of the Indergit action be sent to the purported members of the collective group (approximately 7,000 current and former store managers) and approximately 1,550 joined the Indergit action. Discovery as to certification issues has been completed. On September 26, 2013, the Court granted Rule 23 class certification of the New York store manager claims as to liability only, but denied it as to damages, and denied the Company's motion for decertification of the nationwide collective action claims. The Company has filed a motion seeking reconsideration of the Court's September 26, 2013 decision and briefing on that motion is complete and awaiting a ruling. Once approved by the Court, notice of the Rule 23 class certification as to liability only will be sent to approximately 1,750 current and former store managers in the state of New York. At this time, the Company is not able to either predict the outcome of this lawsuit or estimate a potential range of loss with respect to the lawsuit. The Company's management believes, however, that this lawsuit is without merit and not appropriate for collective or class action treatment and is vigorously defending this lawsuit. | |
The Company is currently a defendant in several putative class action lawsuits filed in state courts in California alleging violations of California wage and hour laws, rules and regulations pertaining primarily to failure to pay overtime, pay for missed meals and rest periods and failure to provide employee seating. These suits purport to be class actions and seek substantial damages. The Company has aggressively challenged both the merits of the lawsuits and the allegations that the cases should be certified as class or representative actions. With respect to cases involving meal and rest periods (Chase and Scherwin v. Rite Aid Corporation pending in Los Angeles County Superior Court and Kyle v. Rite Aid Corporation pending in Sacramento County Superior Court), in light of the cost and uncertainty involved in these lawsuits, the Company is involved in ongoing discussions with counsel for the Plaintiffs concerning a possible resolution of these matters. During the period ended March 1, 2014, the Company recorded a legal accrual with respect to these matters. With respect to the other lawsuits described in this paragraph, the Company, at this time, is not able to predict either the outcome of these lawsuits or estimate a potential range of loss with respect to said lawsuits. | |
The Company was served with a United States Department of Health and Human Services Office of the Inspector General ("OIG") subpoena dated March 5, 2010 in connection with an investigation being conducted by the OIG and the United States Attorney's Office for the Central District of California. The subpoena requests records related to any gift card inducement programs for customers who transferred prescriptions for drugs or medicines to the Company's pharmacies, and whether any customers who receive federally funded prescription benefits (e.g. Medicare and Medicaid) may have benefited from those programs. The Company has substantially completed its production of records in response to the subpoena. In June 2013, the government contacted the Company, and the Company is involved in ongoing discussions with the government regarding the matter. The Company is unable to predict the timing or outcome of any review by the government of such information. | |
The Company was served with a Civil Investigative Demand Subpoena Duces Tecum dated August 26, 2011 by the United States Attorney's Office for the Eastern District of Michigan. The subpoena requests records regarding Rite Aid's Rx Savings Program and the reporting of usual and customary charges to publicly funded health programs. In connection with the same investigation, the Company was served with a Civil Subpoena Duces Tecum dated February 22, 2013 by the State of Indiana Office of the Attorney General. The Company has substantially completed its response to both of the subpoenas and is unable to predict the timing or outcome of any review by the government of such information. | |
In April 2012, the Company received an administrative subpoena from the Drug Enforcement Administration ("DEA"), Albany, New York District Office, requesting information regarding the Company's sale of products containing pseudoephedrine ("PSE"). In April 2012, it also received a communication from the United States Attorneys Office ("USAO") for the Northern District of New York concerning an investigation of possible civil violations of the Combat Methamphetamine Epidemic Act of 2005 ("CMEA"). In April 2013, the Company received additional administrative subpoenas from DEA concerning certain retail PSE transactions at New York stores and the USAO commenced discussions with the Company regarding whether, from 2009 (upon implementation of an electronic PSE transaction logbook system) through the present, the Company sold products containing PSE in violation of the CMEA. Violations of the CMEA could result in the imposition of administrative, civil and/or criminal penalties against the Company. The Company is cooperating with the government and continues to provide information responsive to the subpoenas. The Company has entered into a tolling agreement with the USAO. The Company is unable to predict the timing or outcome of any review by the government of such information. | |
The Company received an additional administrative subpoena from the DEA in December 2013 requesting information in connection with an investigation of violations of the CMEA in West Virginia. The Company is unable to predict the timing or outcome of any review by the government of such information. | |
In January 2013, the DEA, Los Angeles District Office, served an administrative subpoena on the Company seeking documents related to prescriptions by a certain prescriber. The USAO, Central District of California, also contacted the Company about a related investigation into allegations that Rite Aid pharmacies filled certain controlled substance prescriptions for a number of practitioners after their DEA registrations had expired or otherwise become invalid in violation of the federal Controlled Substances Act and DEA regulations. The Company responded to the administrative subpoena and subsequent informal requests for information from the USAO. The Company met with the USAO and DEA in January 2014 and is involved in ongoing discussions with the government regarding this matter. The Company recorded a legal accrual during the period ended March 1, 2014. | |
The Company was served with a Civil Investigative Demand dated June 21, 2013 by the USAO for the Eastern District of California. The CID requests records and responses to interrogatories regarding Rite Aid's Drug Utilization Review and prescription dispensing protocol and the dispensing of drugs designated "Code 1" by the State of California. The Company is in the process of producing responsive documents and interrogatory responses and is unable to predict the timing or outcome of any review by the government of such information. | |
In addition to the above described matters, the Company is subject from time to time to various claims and lawsuits and governmental investigations arising in the ordinary course of business. While the Company's management cannot predict the outcome of any of the claims, the Company's management does not believe that the outcome of any of these legal matters will be material to the Company's consolidated financial position. It is possible, however, that the Company's results of operations or cash flows in a particular fiscal period could be materially affected by an unfavorable resolution of pending litigation or contingencies. | |
Contingencies | |
The California Department of Health Care Services ("DHCS"), the agency responsible for administering the State of California Medicaid program, implemented retroactive reimbursement rate reductions effective June 1, 2011, impacting the medical provider community in California, including pharmacies. Numerous medical providers, including representatives of both chain and independent pharmacies, filed suits against DHCS in federal district court in California and obtained preliminary injunctions against the rate cuts, subject to a trial on the merits. DHCS appealed the preliminary injunctions to the Ninth Circuit Court of Appeals, which Court vacated the injunctions. Based upon the actions of DHCS and the decision of the appeals court, the Company recorded an appropriate accrual. In January 2014, the Center for Medicare and Medicaid Services approved a state plan amendment that excluded certain drugs from the retroactive reimbursement rate reductions effective March 31, 2012. Accordingly, the Company adjusted its accrual to take into account this exclusion at year end. As pertinent facts and circumstances develop, this accrual may be adjusted further. | |
Supplementary_Cash_Flow_Data
Supplementary Cash Flow Data | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Supplementary Cash Flow Data | ' | ||||||||||
Supplementary Cash Flow Data | ' | ||||||||||
18. Supplementary Cash Flow Data | |||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
Cash paid for interest (net of capitalized amounts of $197, $399 and $315) | $ | 414,692 | $ | 482,145 | $ | 528,894 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Cash payments (refund) for income taxes, net | $ | 3,191 | $ | (776 | ) | $ | 4,913 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Equipment financed under capital leases | $ | 18,065 | $ | 7,906 | $ | 7,052 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Equipment received for noncash consideration | $ | 2,825 | $ | 3,285 | $ | 3,616 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Preferred stock dividends paid in additional shares | $ | 8,318 | $ | 10,528 | $ | 9,919 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Accrued capital expenditures | $ | 72,841 | $ | 45,456 | $ | 45,454 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Gross borrowings from revolver | $ | 2,668,000 | $ | 1,117,000 | $ | 2,654,000 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Gross repayments to revolver | $ | 2,933,000 | $ | 588,000 | $ | 2,546,000 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Mar. 01, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
19. Related Party Transactions | |
There were receivables from related parties of $19 and $23 at March 1, 2014 and March 2, 2013, respectively. | |
On July 22, 2013, the Jean Coutu Group announced that it had sold all of its 65,401,162 shares of Rite Aid's common stock. As a result of this sale, the Jean Coutu Group was required to cause its last designee to resign from Rite Aid's board of directors and, accordingly, Francois J. Coutu resigned from Rite Aid's board of directors effective November 8, 2013. | |
On September 26, 2013, the Company agreed to exchange eight shares of 7% Series G Convertible Preferred Stock (the "Series G preferred stock") and 1,876,013 shares of 6% Series H Convertible Preferred Stock (the "Series H preferred stock", collectively the "Preferred Stock") of the Company (the "Exchange"), held by Green Equity Investors III, L.P. ("LGP") for 40,000,000 shares of the Company's common stock, par value $1.00 per share, with a market value of $190,400 at the $4.76 per share closing price on the Settlement Date (as hereinafter defined), pursuant to an individually negotiated exchange transaction. The Exchange settled on September 30, 2013 (the "Settlement Date"). The Preferred Stock, including additional shares representing earned but unpaid dividends as of the Settlement Date, was redeemable by the Company for cash at 105% of the Preferred Stock's $100 per share liquidation preference or $199,937. The Company agreed to the Exchange as it was prohibited under several of its debt instruments from using cash to effect the redemption of the Preferred Stock. Following the Settlement Date, no shares of the Series G preferred stock or Series H preferred stock remained outstanding and the Company's restated certificate of incorporation was amended to eliminate all references to the Series G preferred stock and Series H preferred stock. In accordance with the terms of the Exchange, John M. Baumer, a member of the board of directors of the Company and a limited partner of Leonard Green & Partners, L.P., an affiliate of the LGP, resigned from the Company's board of directors. | |
The Series G preferred stock had a liquidation preference of $100 per share and paid quarterly dividends in additional shares at 7% of liquidation preference and could be redeemed at the Company's election. The Series H preferred stock paid quarterly dividends in additional shares at 6% of liquidation preference and could be redeemed at the Company's election. The Series G preferred stock and Series H preferred stock were convertible into common stock of the Company, at the holder's option, at a conversion rate of $5.50 per share. | |
As of the Settlement Date, LGP held 1,904,161 shares of Series G preferred stock and Series H preferred stock, which included 28,140 shares of earned and unpaid dividends. The Series G preferred stock and Series H preferred stock would have converted into 34,621,117 shares of common stock at the contracted conversion rate of $5.50 per share. Accordingly, income attributable to common stockholders was reduced by $25,603, or $0.03 per diluted share, the value of the additional 5,378,883 shares of common stock issued upon conversion at the $4.76 per share closing price on the Settlement Date. | |
The Company had a financial advisory services agreement with Leonard Green & Partners, L.P. to pay a monthly fee of $12.5 plus out-of-pocket expenses which was terminated in fiscal 2012. The Company paid fees of $38 for financial advisory services and expense reimbursements of $67 in fiscal 2012. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Mar. 01, 2014 | |
Subsequent Events | ' |
Subsequent Events | ' |
20. Subsequent Events | |
On April 1, 2014, the Company acquired Boston based Health Dialog Services Corporation, which is engaged in providing health coaching, shared decision making and healthcare analytics from Bupa, a London based international healthcare services group. Health Dialog will operate as a 100 percent owned subsidiary of the Company. | |
On April 10, 2014, the Company acquired Houston based RediClinic, which is engaged in the operation of 30 retail clinics in the greater Houston, Austin and San Antonio areas. RediClinic will operate as a 100 percent owned subsidiary of the Company. | |
The Company paid a combined amount of $86.0 million and assumed debt of $2.5 million related to the acquisitions noted above. | |
Interim_Financial_Results_Unau
Interim Financial Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Mar. 01, 2014 | |||||||||||||||||
Interim Financial Results (Unaudited) | ' | ||||||||||||||||
Interim Financial Results (Unaudited) | ' | ||||||||||||||||
21. Interim Financial Results (Unaudited) | |||||||||||||||||
Fiscal Year 2014 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 6,293,057 | $ | 6,278,165 | $ | 6,357,732 | $ | 6,597,459 | $ | 25,526,413 | |||||||
Cost of goods sold | 4,472,066 | 4,461,804 | 4,557,066 | 4,711,743 | 18,202,679 | ||||||||||||
Selling, general and administrative expenses | 1,609,261 | 1,602,931 | 1,632,299 | 1,716,671 | 6,561,162 | ||||||||||||
Lease termination and impairment charges | 10,972 | 11,390 | 1,672 | 17,270 | 41,304 | ||||||||||||
Interest expense | 113,064 | 106,716 | 102,819 | 101,992 | 424,591 | ||||||||||||
Loss on debt retirements, net | — | 62,172 | 271 | — | 62,443 | ||||||||||||
(Gain) loss on sale of assets, net | (5,180 | ) | (1,885 | ) | (9,331 | ) | 412 | (15,984 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
6,200,183 | 6,243,128 | 6,284,796 | 6,548,088 | 25,276,195 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Income before income taxes | 92,874 | 35,037 | 72,936 | 49,371 | 250,218 | ||||||||||||
Income tax expense (benefit) | 3,212 | 2,210 | 1,388 | (6,006 | ) | 804 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income | $ | 89,662 | $ | 32,827 | $ | 71,548 | $ | 55,377 | $ | 249,414 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Basic income per share(1) | $ | 0.1 | $ | 0.03 | $ | 0.05 | $ | 0.06 | $ | 0.23 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted income per share(1) | $ | 0.09 | $ | 0.03 | $ | 0.04 | $ | 0.06 | $ | 0.23 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Fiscal Year 2013 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 6,468,287 | $ | 6,230,884 | $ | 6,237,847 | $ | 6,455,245 | $ | 25,392,263 | |||||||
Cost of goods sold | 4,719,516 | 4,520,463 | 4,426,526 | 4,407,482 | 18,073,987 | ||||||||||||
Selling, general and administrative expenses | 1,688,066 | 1,618,169 | 1,612,198 | 1,682,332 | 6,600,765 | ||||||||||||
Lease termination and impairment charges | 12,143 | 7,783 | 14,366 | 36,567 | 70,859 | ||||||||||||
Interest expense | 130,588 | 129,054 | 128,371 | 127,408 | 515,421 | ||||||||||||
Loss on debt retirements, net | 17,842 | — | — | 122,660 | 140,502 | ||||||||||||
(Gain) loss on sale of assets, net | (10,051 | ) | (2,954 | ) | (6,262 | ) | 2,491 | (16,776 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
6,558,104 | 6,272,515 | 6,175,199 | 6,378,940 | 25,384,758 | |||||||||||||
| | | | | | | | | | | | | | | | | |
(Loss) income before income taxes | (89,817 | ) | (41,631 | ) | 62,648 | 76,305 | 7,505 | ||||||||||
Income tax (benefit) expense | (61,729 | ) | (2,866 | ) | 777 | (46,782 | ) | (110,600 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Net (loss) income | $ | (28,088 | ) | $ | (38,765 | ) | $ | 61,871 | $ | 123,087 | $ | 118,105 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Basic (loss) income per share(1) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.07 | $ | 0.14 | $ | 0.12 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted (loss) income per share(1) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.07 | $ | 0.13 | $ | 0.12 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
Income (loss) per share amounts for each quarter may not necessarily total to the yearly income (loss) per share due to the weighting of shares outstanding on a quarterly and year-to-date basis. | |||||||||||||||||
During the second quarter of 2014, the Company recorded a loss on debt retirement related to the July 2013 refinancing as discussed in Note 11. During the fourth quarter of fiscal 2014, the Company recorded facilities impairment charges of $7,877 and LIFO expense of $44,142 due to higher pharmacy inflation rates at year end as compared to significant deflation associated with generic products recognized at prior year end. | |||||||||||||||||
During the fourth quarter of 2013, the Company recorded a loss on debt retirement related to the February 2013 refinancing as discussed in Note 11. During the fourth quarter of fiscal 2013, the Company recorded facilities impairment charges of $24,012 and a LIFO credit of $175,384 due to significant deflation associated with generic products, partially offset by normal brand inflation. | |||||||||||||||||
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||
Mar. 01, 2014 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Financial Instruments | ' | |||||||||||||
22. Financial Instruments | ||||||||||||||
The carrying amounts and fair values of financial instruments at March 1, 2014 and March 2, 2013 are listed as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
Variable rate indebtedness | $ | 2,522,293 | $ | 2,524,508 | $ | 2,296,001 | $ | 2,275,694 | ||||||
Fixed rate indebtedness | $ | 3,127,439 | $ | 3,569,777 | $ | 3,622,351 | $ | 3,912,903 | ||||||
Cash, trade receivables and trade payables are carried at market value, which approximates their fair values due to the short-term maturity of these instruments. | ||||||||||||||
The following methods and assumptions were used in estimating fair value disclosures for financial instruments: | ||||||||||||||
LIBOR-based borrowings under credit facilities: | ||||||||||||||
The carrying amounts for LIBOR-based borrowings under the credit facilities, term loans and term notes are estimated based on the quoted market price of the financial instruments. | ||||||||||||||
Long-term indebtedness: | ||||||||||||||
The fair values of long-term indebtedness are estimated based on the quoted market prices of the financial instruments. If quoted market prices were not available, the Company estimated the fair value based on the quoted market price of a financial instrument with similar characteristics. | ||||||||||||||
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||
Mar. 01, 2014 | ||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
For the Years Ended March 1, 2014, March 2, 2013 and March 3, 2012 | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Allowances deducted from accounts receivable | Balance at | Additions | Deductions | Balance at | ||||||||||
for estimated uncollectible amounts: | Beginning | Charged to | End of | |||||||||||
of Period | Costs and | Period | ||||||||||||
Expenses | ||||||||||||||
Year ended March 1, 2014 | $ | 28,271 | $ | 43,524 | $ | 44,922 | $ | 26,873 | ||||||
Year ended March 2, 2013 | $ | 28,832 | $ | 36,397 | $ | 36,958 | $ | 28,271 | ||||||
Year ended March 3, 2012 | $ | 25,116 | $ | 18,274 | $ | 14,558 | $ | 28,832 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 01, 2014 | |
Summary of Significant Accounting Policies | ' |
Fiscal Year | ' |
Fiscal Year | |
The Company's fiscal year ends on the Saturday closest to February 29 or March 1. The fiscal year ended March 1, 2014 included 52 weeks. The fiscal year ended March 2, 2013 included 52 weeks and the fiscal year ended March 3, 2012 included 53 weeks. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and all of its 100 percent owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash on hand and highly liquid investments, which are readily convertible to known amounts of cash and which have original maturities of three months or less when purchased. | |
Allowance for Uncollectible Receivables | ' |
Allowance for Uncollectible Receivables | |
Approximately 97.0% of prescription sales are made to customers who are covered by third-party payors, such as insurance companies, government agencies and employers. The Company recognizes receivables that represent the amount owed to the Company for sales made to customers or employees of those payors that have not yet been paid. The Company maintains a reserve for the amount of these receivables deemed to be uncollectible. This reserve is calculated based upon historical collection activity adjusted for current conditions. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market. Inventory balances include the capitalization of certain costs related to purchasing, freight and handling costs associated with placing inventory in its location and condition for sale. The Company uses the last-in, first-out ("LIFO") cost flow assumption for substantially all of its inventories. The Company calculates its inflation index based on internal product mix and utilizes the link-chain LIFO method. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
Asset impairments are recorded when the carrying value of assets are not recoverable. For purposes of recognizing and measuring impairment of long-lived assets, the Company categorizes assets of operating stores as "Assets to Be Held and Used" and "Assets to Be Disposed Of." The Company evaluates assets at the store level because this is the lowest level of identifiable cash flows ascertainable to evaluate impairment. Assets being tested for recoverability at the store level include tangible long-lived assets and identifiable, finite-lived intangibles that arose in purchase business combinations. Corporate assets to be held and used are evaluated for impairment based on excess cash flows from the stores that support those assets. | |
The Company reviews long-lived assets to be held and used for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the undiscounted expected future cash flows is less than the carrying amount of the asset, the Company recognizes an impairment loss. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
Property, plant and equipment are stated at cost, net of accumulated depreciation and amortization. The Company provides for depreciation using the straight-line method over the following useful lives: buildings—30 to 45 years; equipment—3 to 15 years. | |
Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. When determining the amortization period of a leasehold improvement, the Company considers whether discretionary exercise of a lease renewal option is reasonably assured. If it is determined that the exercise of such option is reasonably assured, the Company will amortize the leasehold improvement asset over the minimum lease term, plus the option period. This determination depends on the remaining life of the minimum lease term and any economic penalties that would be incurred if the lease option is not exercised. | |
Capitalized lease assets are recorded at the lesser of the present value of minimum lease payments or fair market value and amortized over the estimated useful life of the related property or term of the lease. | |
The Company capitalizes direct internal and external development costs associated with internal-use software. Neither preliminary evaluation costs nor costs associated with the software after implementation are capitalized. For fiscal years 2014, 2013 and 2012, the Company capitalized costs of approximately $6,547, $5,844 and $6,371, respectively. | |
Intangible Assets | ' |
Intangible Assets | |
The Company has certain finite-lived intangible assets that are amortized over their useful lives. The value of favorable and unfavorable leases on stores acquired in business combinations are amortized over the terms of the leases on a straight-line basis. Prescription files acquired in business combinations are amortized over an estimated useful life of ten years on an accelerated basis, which approximates the anticipated prescription file retention and related cash flows. Purchased prescription files acquired in other than business combinations are amortized over their estimated useful lives of five years on a straight-line basis. | |
Deferred Financing Costs | ' |
Deferred Financing Costs | |
Costs incurred to issue debt are deferred and amortized as a component of interest expense over the terms of the related debt agreements. Amortization expense of deferred financing costs was $15,259, $21,896 and $22,049 for fiscal 2014, 2013 and 2012, respectively. | |
Revenue Recognition | ' |
Revenue Recognition | |
For front end sales, the Company recognizes revenue from the sale of merchandise at the time the merchandise is sold. The Company records revenue net of an allowance for estimated future returns. Return activity is immaterial to revenues and results of operations in all periods presented. For third party payor pharmacy sales, revenue is recognized at the time the prescription is filled, which is or approximates when the customer picks up the prescription and is recorded net of an allowance for prescriptions that were filled but will not be picked up by the customer. For all periods presented, there is no material difference between the revenue recognized at the time the prescription is filled and that which would be recognized when the customer picks up the prescription. For cash prescriptions and patient third party payor co-payments, the Company recognizes revenue when the patient picks up the prescription and tenders the cash price or patient third party payor co-payment amount at the point of sale. Prescriptions are generally not returnable. | |
The Company offers a chain wide loyalty card program titled wellness +. Members participating in the wellness + loyalty card program earn points on a calendar year basis for eligible front end merchandise purchases and qualifying prescriptions. One point is awarded for each dollar spent towards front end merchandise and 25 points are awarded for each qualifying prescription. | |
Members reach specific wellness + tiers based on the points accumulated during the calendar year, which entitles such customers to certain future discounts and other benefits upon reaching that tier. For example, any customer that reaches 1,000 points in a calendar year achieves the "Gold" tier, enabling them to receive a 20% discount on qualifying purchases of front end merchandise for the remaining portion of the calendar year and also the next calendar year. There are also similar "Silver" and "Bronze" levels with lower thresholds and benefit levels. | |
As wellness + customers accumulate points, the Company defers the value of the points earned as deferred revenue (included in other current and noncurrent liabilities, based on the expected usage). The amount deferred is based on historic and projected customer activity (e.g., tier level, spending level). As customers receive discounted front end merchandise, the Company recognizes an allocable portion of the deferred revenue. The Company deferred $103,562 as of March 1, 2014 of which $83,668 is included in other current liabilities and $19,894 is included in noncurrent liabilities. The Company deferred $100,883 as of March 2, 2013 of which $78,696 is included in other current liabilities and $22,187 is included in noncurrent liabilities. | |
Cost of Goods Sold | ' |
Cost of Goods Sold | |
Cost of goods sold includes the following: the cost of inventory sold during the period, including related vendor rebates and allowances, LIFO credit or charges, costs incurred to return merchandise to vendors, inventory shrink, purchasing costs and warehousing costs, which include inbound freight costs from the vendor, distribution payroll and benefit costs, distribution center occupancy costs and depreciation expense and delivery expenses to the stores. | |
Vendor Rebates and Allowances | ' |
Vendor Rebates and Allowances | |
Rebates and allowances received from vendors relate to either buying and merchandising or promoting the product. Buying and merchandising related rebates and allowances are recorded as a reduction of cost of goods sold as product is sold. Buying and merchandising rebates and allowances include all types of vendor programs such as cash discounts from timely payment of invoices, purchase discounts or rebates, volume purchase allowances, price reduction allowances and slotting allowances. Certain product promotion related rebates and allowances, primarily related to advertising, are recorded as a reduction in selling, general and administrative expenses when the advertising commitment has been satisfied. | |
Rent | ' |
Rent | |
The Company records rent expense on operating leases on a straight-line basis over the minimum lease term. The Company begins to record rent expense at the time that the Company has the right to use the property. From time to time, the Company receives incentive payments from landlords that subsidize lease improvement construction. These leasehold incentives are deferred and recognized on a straight-line basis over the minimum lease term. | |
Selling, General and Administrative Expenses | ' |
Selling, General and Administrative Expenses | |
Selling, general and administrative expenses include store and corporate administrative payroll and benefit costs, occupancy costs which include retail store and corporate rent costs, facility and leasehold improvement depreciation and utility costs, advertising, repair and maintenance, insurance, equipment depreciation and professional fees. | |
Repairs and Maintenance | ' |
Repairs and Maintenance | |
Routine repairs and maintenance are charged to operations as incurred. Improvements and major repairs, which extend the useful life of an asset, are capitalized and depreciated. | |
Advertising | ' |
Advertising | |
Advertising costs, net of specific vendor advertising allowances, are expensed in the period the advertisement first takes place. Advertising expenses, net of vendor advertising allowances, for fiscal 2014, 2013 and 2012 were $322,843, $335,779 and $369,405, respectively. | |
Insurance | ' |
Insurance | |
The Company is self-insured for certain general liability and workers' compensation claims. For claims that are self-insured, stop-loss insurance coverage is maintained for workers' compensation occurrences exceeding $1,000 and general liability occurrences exceeding $2,000. The Company utilizes actuarial studies as the basis for developing reported claims and estimating claims incurred but not reported relating to the Company's self-insurance. Workers' compensation claims are discounted to present value using a risk-free interest rate. | |
Benefit Plan Accruals | ' |
Benefit Plan Accruals | |
The Company has several defined benefit plans, under which participants earn a retirement benefit based upon a formula set forth in the plan. The Company records expense related to these plans using actuarially determined amounts that are calculated under the provisions of ASC 715, "Compensation—Retirement Benefits." Key assumptions used in the actuarial valuations include the discount rate, the expected rate of return on plan assets and the rate of increase in future compensation levels. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company has several stock option plans, which are described in detail in Note 13. The Company accounts for stock-based compensation under ASC 718, "Compensation—Stock Compensation." The Company recognizes option expense over the requisite service period of the award, net of an estimate for the impact of award forfeitures. | |
Store Pre-opening Expenses | ' |
Store Pre-opening Expenses | |
Costs incurred prior to the opening of a new or relocated store, associated with a remodeled store or related to the opening of a distribution facility are charged against earnings when incurred. | |
Litigation Reserves | ' |
Litigation Reserves | |
The Company is involved in litigation on an ongoing basis. The Company accrues its best estimate of the probable loss related to legal claims. Such estimates are developed in consultation with in-house counsel, and are based upon a combination of litigation and settlement strategies. | |
Facility Closing Costs and Lease Exit Charges | ' |
Facility Closing Costs and Lease Exit Charges | |
When a store or distribution center is closed, the Company records an expense for unrecoverable costs and accrues a liability equal to the present value at current credit adjusted risk-free interest rates of the remaining lease obligations and anticipated ancillary occupancy costs, net of estimated sublease income. Other store or distribution center closing and liquidation costs are expensed when incurred. | |
Income Taxes | ' |
Income Taxes | |
Deferred income taxes are determined based on the difference between the financial reporting and tax basis of assets and liabilities. Deferred income tax expense (benefit) represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax loss and credit carryforwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion of the deferred tax assets will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. | |
The Company has net operating loss ("NOL") carryforwards that can be utilized to offset future income for federal and state tax purposes. These NOLs generate a significant deferred tax asset. The Company regularly reviews the deferred tax assets for recoverability considering historical profitability, projected taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. | |
The Company recognizes tax liabilities in accordance with ASC 740, "Income Taxes" and the Company adjusts these liabilities with changes in judgment as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. | |
Sales Tax Collected | ' |
Sales Tax Collected | |
Sales taxes collected from customers and remitted to various governmental agencies are presented on a net basis (excluded from revenues) in the Company's statement of operations. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
Significant Concentrations | ' |
Significant Concentrations | |
The Company's pharmacy sales were primarily to customers covered by health plan contracts, which typically contract with a third party payor that agrees to pay for all or a portion of a customer's eligible prescription purchases. During fiscal 2014, the top five third party payors accounted for approximately 65.8% of the Company's pharmacy sales. The largest third party payor, Express Scripts, represented 31.6% and 35.3% of pharmacy sales during fiscal 2014 and 2013, respectively. The largest third party payor during fiscal 2012, Medco Health Solutions, represented 22.9% of pharmacy sales. Third party payors are entities such as an insurance company, governmental agency, health maintenance organization or other managed care provider, and typically represent several health care contracts and customers. | |
During fiscal 2014, state sponsored Medicaid agencies and related managed care Medicaid payors accounted for approximately 13.7% of the Company's pharmacy sales, the largest of which was approximately 1.1% of the Company's pharmacy sales. During fiscal 2014, approximately 30.6% of the Company's pharmacy sales were to customers covered by Medicare Part D. Any significant loss of third-party payor business could have a material adverse effect on the Company's business and results of operations. | |
During fiscal 2014, the Company purchased brand pharmaceuticals and some generic pharmaceuticals, which amounted to approximately 88.2% of the dollar volume of its prescription drugs, from a single wholesaler, McKesson Corporation ("McKesson"), under a contract that the Company amended and restated in February 2014 and now runs through March 31, 2019. Under the amended and restated contract, with limited exceptions, the Company is required to purchase all of its branded pharmaceutical products and almost all of its generic (non-brand name) pharmaceutical products from McKesson. If the Company's relationship with McKesson was disrupted, it could temporarily have difficulty filling prescriptions for brand-named and generic drugs until it executed a replacement wholesaler agreement or developed and implemented self-distribution processes. | |
Derivatives | ' |
Derivatives | |
The Company may enter into interest rate swap agreements to hedge the exposure to increasing rates with respect to its variable rate debt, when the Company deems it prudent to do so. Upon inception of interest rate swap agreements, or modifications thereto, the Company performs a comprehensive review of the interest rate swap agreements based on the criteria as provided by ASC 815, "Derivatives and Hedging." As of March 1, 2014 and March 2, 2013, the Company had no interest rate swap arrangements or other derivatives. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. ASU No. 2013-11 is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. This pronouncement will have no effect on the financial statements as the Company has historically presented uncertain tax positions in accordance with ASU No. 2013-11. | |
In May 2013, the FASB issued a proposed Accounting Standards Update, Leases (Topic 842): a revision of the 2010 proposed Accounting Standards Update, Leases (Topic 840), that would require an entity to recognize assets and liabilities arising under lease contracts on the balance sheet. The proposed standard, as currently drafted, will have a material impact on the company's reported results of operations and financial position. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The guidance was issued in response to ASU No. 2011-05 and required disclosure of the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items of net income, if the amounts reclassified are required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period. For other amounts not required to be reclassified to net income in their entirety in the same reporting period, or when a portion of the amount is reclassified to a balance sheet account instead of directly to income or expense, a cross reference to the related footnote disclosures for additional information should be provided. The new requirements were effective prospectively for fiscal years beginning on or after December 15, 2012, and for interim periods within those fiscal years. The adoption did not have a material effect on the Company's financial statements. The Company has adopted the guidance in the first quarter of fiscal 2014 and modified the disclosures surrounding comprehensive income in Note 14, Reclassifications from Accumulated Other Comprehensive Loss. | |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Schedule of revenues | ' | ||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Pharmacy sales | $ | 17,239,436 | $ | 17,083,811 | $ | 17,725,645 | |||||
Front end sales | 8,168,922 | 8,200,022 | 8,293,643 | ||||||||
Other revenue | 118,055 | 108,430 | 101,934 | ||||||||
| | | | | | | | | | | |
$ | 25,526,413 | $ | 25,392,263 | $ | 26,121,222 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of principal classes of products | ' | ||||||||||
Product Class | Percentage | ||||||||||
of Sales | |||||||||||
Prescription drugs | 67.9 | % | |||||||||
Over-the-counter medications and personal care | 9.8 | % | |||||||||
Health and beauty aids | 5.1 | % | |||||||||
General merchandise and other | 17.2 | % |
Income_Loss_Per_Share_Tables
Income (Loss) Per Share (Tables) | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Income (Loss) Per Share | ' | ||||||||||
Schedule of calculation of basic and diluted income (loss) per share | ' | ||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Numerator for income (loss) per share: | |||||||||||
Net income (loss) | $ | 249,414 | $ | 118,105 | $ | (368,571 | ) | ||||
Accretion of redeemable preferred stock | (77 | ) | (102 | ) | (102 | ) | |||||
Cumulative preferred stock dividends | (8,318 | ) | (10,528 | ) | (9,919 | ) | |||||
Conversion of Series G and H preferred stock | (25,603 | ) | — | — | |||||||
| | | | | | | | | | | |
Income (loss) attributable to common stockholders—basic | $ | 215,416 | $ | 107,475 | $ | (378,592 | ) | ||||
Add back—interest on convertible notes | 5,456 | — | — | ||||||||
| | | | | | | | | | | |
Income (loss) attributable to common stockholders—diluted | $ | 220,872 | $ | 107,475 | $ | (378,592 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Denominator: | |||||||||||
Basic weighted average shares | 922,199 | 889,562 | 885,819 | ||||||||
Outstanding options and restricted shares, net | 32,093 | 17,697 | — | ||||||||
Convertible notes | 24,800 | — | — | ||||||||
| | | | | | | | | | | |
Diluted weighted average shares | 979,092 | 907,259 | 885,819 | ||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Basic income (loss) per share | $ | 0.23 | $ | 0.12 | $ | (0.43 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Diluted income (loss) per share | $ | 0.23 | $ | 0.12 | $ | (0.43 | ) | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of antidilutive effect of potential common shares, excluded from computation of diluted income (loss) per share | ' | ||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Stock options | 4,044 | 10,455 | 73,798 | ||||||||
Convertible preferred stock | — | 33,109 | 31,195 | ||||||||
Convertible notes | — | 24,800 | 24,800 | ||||||||
| | | | | | | | | | | |
4,044 | 68,364 | 129,793 | |||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Lease_Termination_and_Impairme1
Lease Termination and Impairment Charges (Tables) | 12 Months Ended | |||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||
Lease Termination and Impairment Charges | ' | |||||||||||||||||||
Schedule of impairment charges and number of locations, segregated by closed facilities and active stores that have been recorded | ' | |||||||||||||||||||
Year Ended | ||||||||||||||||||||
March 1, 2014 | March 2, 2013 | March 3, 2012 | ||||||||||||||||||
Number | Charge | Number | Charge | Number | Charge | |||||||||||||||
Closed facilities: | ||||||||||||||||||||
Actual and approved store closings | 31 | $ | 531 | 29 | $ | 325 | 55 | $ | 2,283 | |||||||||||
Actual and approved relocations | — | — | — | — | 2 | 499 | ||||||||||||||
Existing surplus properties | 7 | 798 | 5 | 594 | 12 | 5,863 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total impairment charges-closed facilities | 38 | 1,329 | 34 | 919 | 69 | 8,645 | ||||||||||||||
Active stores: | ||||||||||||||||||||
Additional current period charges for stores previously impaired in prior periods(1) | 378 | 4,162 | 469 | 5,835 | 591 | 9,822 | ||||||||||||||
Charges for new, relocated and remodeled stores that did not meet their asset recoverability test in the current period(2) | 1 | 4,028 | 14 | 9,190 | 19 | 18,926 | ||||||||||||||
Charges for the remaining stores that did not meet their asset recoverability test in the current period(3) | 17 | 3,558 | 47 | 8,948 | 53 | 14,605 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total impairment charges—active stores | 396 | 11,748 | 530 | 23,973 | 663 | 43,353 | ||||||||||||||
Total impairment charges—all locations | 434 | $ | 13,077 | 564 | $ | 24,892 | 732 | $ | 51,998 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total number of active stores | 4,587 | 4,623 | 4,667 | |||||||||||||||||
Stores impaired in prior periods with no current charge | 709 | 588 | 428 | |||||||||||||||||
Stores with a current period charge | 396 | 530 | 663 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total cumulative active stores with impairment charges | 1,105 | 1,118 | 1,091 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||
These charges are related to stores that were impaired for the first time in prior periods. Most active stores, requiring an impairment charge, are fully impaired in the first period that they do not meet their asset recoverability test. However, in each prior period presented, a minority of stores were partially impaired since their fair value supported a reduced net book value. Accordingly, these stores may be further impaired in the current and future periods as a result of changes in their actual or projected cash flows, or changes to their fair value estimates. Also, the Company makes ongoing capital additions to certain stores to improve their operating results or to meet geographical competition, which if later are deemed to be unrecoverable, will be impaired in future periods. Of this total, 375, 464 and 583 stores for fiscal years 2014, 2013 and 2012 respectively have been fully impaired. | ||||||||||||||||||||
-2 | ||||||||||||||||||||
These charges are related to new stores (open at least 3 years) and relocated stores (relocated in the last 2 years) and significant strategic remodels (remodeled in the last year) that did not meet their recoverability test during the current period. These stores have not met their original return on investment projections and have a historical loss of at least 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 1, 14 and 19 stores for fiscal years 2014, 2013 and 2012 respectively have been fully impaired. | ||||||||||||||||||||
-3 | ||||||||||||||||||||
These charges are related to the remaining active stores that did not meet the recoverability test during the current period. These stores have a historical loss of at least 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 14, 43 and 43 stores for fiscal years 2014, 2013 and 2012 respectively have been fully impaired. | ||||||||||||||||||||
Schedule of fair value of long-lived assets for which an impairment assessment was performed and total losses | ' | |||||||||||||||||||
Quoted Prices in | Significant | Significant | Fair Values | Total | ||||||||||||||||
Active Markets | Other | Unobservable | as of | Charges | ||||||||||||||||
for Identical | Observable | Inputs (Level 3) | Impairment | March 1, 2014 | ||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | Date | ||||||||||||||||||
Long-lived assets held and used | $ | — | $ | 42 | $ | 15,051 | $ | 15,093 | $ | (12,279 | ) | |||||||||
Long-lived assets held for sale | — | 14,656 | — | 14,656 | (798 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | — | $ | 14,698 | $ | 15,051 | $ | 29,749 | $ | (13,077 | ) | |||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
Quoted Prices in | Significant | Significant | Fair Values | Total | ||||||||||||||||
Active Markets | Other | Unobservable | as of | Charges | ||||||||||||||||
for Identical | Observable | Inputs (Level 3) | Impairment | March 2, 2013 | ||||||||||||||||
Assets (Level 1) | Inputs (Level 2) | Date | ||||||||||||||||||
Long-lived assets held and used | $ | — | $ | 1,018 | $ | 21,739 | $ | 22,757 | $ | (24,298 | ) | |||||||||
Long-lived assets held for sale | — | 1,842 | — | 1,842 | (594 | ) | ||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | — | $ | 2,860 | $ | 21,739 | $ | 24,599 | $ | (24,892 | ) | |||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
Schedule of closed store and distribution center charges related to new closures, changes in assumptions and interest accretion | ' | |||||||||||||||||||
Year Ended | ||||||||||||||||||||
March 1, | March 2, | March 3, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | ||||||||||||||||||
Balance—beginning of year | $ | 323,757 | $ | 367,864 | $ | 405,350 | ||||||||||||||
Provision for present value of noncancellable lease payments of closed stores | 11,646 | 14,440 | 11,832 | |||||||||||||||||
Changes in assumptions about future sublease income, terminations and change in interest rates | (4,343 | ) | 9,023 | 11,305 | ||||||||||||||||
Interest accretion | 21,250 | 23,246 | 26,084 | |||||||||||||||||
Cash payments, net of sublease income | (68,040 | ) | (90,816 | ) | (86,707 | ) | ||||||||||||||
| | | | | | | | | | | ||||||||||
Balance—end of year | $ | 284,270 | $ | 323,757 | $ | 367,864 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of revenue, operating expenses, and income (loss) before income taxes of stores | ' | |||||||||||||||||||
Year Ended | ||||||||||||||||||||
March 1, | March 2, | March 3, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Revenues | $ | 89,416 | $ | 139,082 | $ | 258,263 | ||||||||||||||
Operating expenses | 100,889 | 153,187 | 284,803 | |||||||||||||||||
Gain from sale of assets | (13,074 | ) | (19,894 | ) | (12,206 | ) | ||||||||||||||
Other (income) expenses | (8,268 | ) | 622 | (7,874 | ) | |||||||||||||||
Income (loss) before income taxes | 9,869 | 5,167 | (6,460 | ) | ||||||||||||||||
Included in these stores' income (loss) before income taxes are: | ||||||||||||||||||||
Depreciation and amortization | 607 | 1,342 | 3,038 | |||||||||||||||||
Inventory liquidation charges | 621 | 708 | 598 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of provision for income tax expense (benefit) | ' | ||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Current tax: | |||||||||||
Federal | $ | — | $ | (6,305 | ) | $ | — | ||||
State | 4,748 | 7,928 | 3,654 | ||||||||
| | | | | | | | | | | |
4,748 | 1,623 | 3,654 | |||||||||
Deferred tax and other: | |||||||||||
Federal | — | (61,544 | ) | 1,729 | |||||||
State | (30,609 | ) | (50,679 | ) | (29,069 | ) | |||||
Tax expense recorded as an increase of additional paid-in-capital | 26,665 | — | — | ||||||||
| | | | | | | | | | | |
(3,944 | ) | (112,223 | ) | (27,340 | ) | ||||||
| | | | | | | | | | | |
Total income tax expense (benefit) | $ | 804 | $ | (110,600 | ) | $ | (23,686 | ) | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of the expected statutory federal tax and the total income tax benefit | ' | ||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||
Expected federal statutory expense at 35% | $ | 87,576 | $ | 2,626 | $ | (137,279 | ) | ||||
Nondeductible expenses | 857 | 1,897 | 2,408 | ||||||||
State income taxes, net | 44,366 | 39,470 | 11,492 | ||||||||
Decrease of previously recorded liabilities | (21,101 | ) | (91,881 | ) | (17,771 | ) | |||||
Nondeductible compensation | 44,244 | — | — | ||||||||
Recoverable federal tax due to special 5-year NOL carryback | — | (6,305 | ) | — | |||||||
Release of indemnification asset | 5,941 | 37,324 | — | ||||||||
Indemnification receipt | — | 587 | — | ||||||||
Valuation allowance | (161,079 | ) | (94,318 | ) | 117,464 | ||||||
| | | | | | | | | | | |
Total income tax expense (benefit) | $ | 804 | $ | (110,600 | ) | $ | (23,686 | ) | |||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of significant components of deferred tax assets and liabilities | ' | ||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Accounts receivable | $ | 62,973 | $ | 62,745 | |||||||
Accrued expenses | 204,346 | 214,110 | |||||||||
Liability for lease exit costs | 116,803 | 142,456 | |||||||||
Pension, retirement and other benefits | 174,917 | 219,515 | |||||||||
Long-lived assets | 424,290 | 374,101 | |||||||||
Other | 1,989 | 2,079 | |||||||||
Credits | 60,951 | 62,121 | |||||||||
Net operating losses | 1,428,751 | 1,558,694 | |||||||||
| | | | | | | | ||||
Total gross deferred tax assets | 2,475,020 | 2,635,821 | |||||||||
Valuation allowance | (2,060,811 | ) | (2,223,675 | ) | |||||||
| | | | | | | | ||||
Total deferred tax assets | 414,209 | 412,146 | |||||||||
Deferred tax liabilities: | |||||||||||
Inventory | 414,209 | 412,146 | |||||||||
| | | | | | | | ||||
Total gross deferred tax liabilities | 414,209 | 412,146 | |||||||||
| | | | | | | | ||||
Net deferred tax assets | $ | — | $ | — | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ||||||||||
2014 | 2013 | 2012 | |||||||||
Unrecognized tax benefits | $ | 30,020 | $ | 247,722 | $ | 286,952 | |||||
Increases to prior year tax positions | — | 6,305 | — | ||||||||
Decreases to tax positions in prior periods | (3,215 | ) | (196,214 | ) | (11,125 | ) | |||||
Increases to current year tax positions | — | — | — | ||||||||
Settlements | — | (3,655 | ) | — | |||||||
Lapse of statute of limitations | (16,662 | ) | (24,138 | ) | (28,105 | ) | |||||
| | | | | | | | | | | |
Unrecognized tax benefits balance | $ | 10,143 | $ | 30,020 | $ | 247,722 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Property, Plant and Equipment | ' | |||||||
Schedule of property, plant and equipment, including capital lease assets | ' | |||||||
2014 | 2013 | |||||||
Land | $ | 233,098 | $ | 243,413 | ||||
Buildings | 753,633 | 753,952 | ||||||
Leasehold improvements | 1,890,369 | 1,733,607 | ||||||
Equipment | 2,194,339 | 2,079,372 | ||||||
Construction in progress | 69,388 | 55,013 | ||||||
| | | | | | | | |
5,140,827 | 4,865,357 | |||||||
Accumulated depreciation | (3,183,498 | ) | (2,969,707 | ) | ||||
| | | | | | | | |
Property, plant and equipment, net | $ | 1,957,329 | $ | 1,895,650 | ||||
| | | | | | | | |
| | | | | | | | |
Other_Intangibles_Tables
Other Intangibles (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 01, 2014 | |||||||||||||||||
Other Intangibles | ' | ||||||||||||||||
Summary of the Company's amortizable intangible assets | ' | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross | Accumulated | Remaining | Gross | Accumulated | Remaining | ||||||||||||
Carrying | Amortization | Weighted | Carrying | Amortization | Weighted | ||||||||||||
Amount | Average | Amount | Average | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Period | Period | ||||||||||||||||
Favorable leases and other | $ | 634,320 | $ | (447,608 | ) | 9 years | $ | 623,541 | $ | (413,556 | ) | 10 years | |||||
Prescription files | 1,353,057 | (1,108,542 | ) | 4 years | 1,286,087 | (1,031,668 | ) | 4 years | |||||||||
| | | | | | | | | | | | | | | | | |
Total | $ | 1,987,377 | $ | (1,556,150 | ) | $ | 1,909,628 | $ | (1,445,224 | ) | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Accrued_Salaries_Wages_and_Oth1
Accrued Salaries, Wages and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Accrued Salaries, Wages and Other Current Liabilities | ' | |||||||
Schedule of accrued salaries, wages and other current liabilities | ' | |||||||
2014 | 2013 | |||||||
Accrued wages, benefits and other personnel costs | $ | 449,585 | $ | 437,222 | ||||
Accrued interest | 69,193 | 76,164 | ||||||
Accrued sales and other taxes payable | 133,357 | 132,767 | ||||||
Accrued store expense | 238,324 | 228,276 | ||||||
Other | 275,400 | 281,886 | ||||||
| | | | | | | | |
$ | 1,165,859 | $ | 1,156,315 | |||||
| | | | | | | | |
| | | | | | | | |
Indebtedness_and_Credit_Agreem1
Indebtedness and Credit Agreement (Tables) | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Indebtedness and Credit Agreement | ' | |||||||
Summary of indebtedness and lease financing obligations | ' | |||||||
2014 | 2013 | |||||||
Secured Debt: | ||||||||
Senior secured revolving credit facility due February 2018 | $ | 400,000 | $ | 665,000 | ||||
Tranche 6 Term Loan due February 2020 | 1,152,293 | 1,161,000 | ||||||
8.00% senior secured notes (senior lien) due August 2020 | 650,000 | 650,000 | ||||||
7.5% senior secured notes (second lien) due March 2017 | — | 500,000 | ||||||
Tranche 1 Term Loan (second lien) due August 2020 | 470,000 | 470,000 | ||||||
Tranche 2 Term Loan (second lien) due June 2021 | 500,000 | — | ||||||
10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,160 and $1,364) | 268,840 | 268,636 | ||||||
Other secured | 5,324 | 5,298 | ||||||
| | | | | | | | |
3,446,457 | 3,719,934 | |||||||
Guaranteed Unsecured Debt: | ||||||||
9.5% senior notes due June 2017 ($810,000 face value less unamortized discount of $5,529) | — | 804,471 | ||||||
6.75% senior notes due June 2021 | 810,000 | — | ||||||
9.25% senior notes due March 2020 ($902,000 face value plus unamortized premium of $4,087 and $4,759) | 906,087 | 906,759 | ||||||
| | | | | | | | |
1,716,087 | 1,711,230 | |||||||
Unguaranteed Unsecured Debt: | ||||||||
8.5% convertible notes due May 2015 | 64,188 | 64,188 | ||||||
7.7% notes due February 2027 | 295,000 | 295,000 | ||||||
6.875% fixed-rate senior notes due December 2028 | 128,000 | 128,000 | ||||||
| | | | | | | | |
487,188 | 487,188 | |||||||
Lease financing obligations | 107,411 | 115,179 | ||||||
| | | | | | | | |
Total debt | 5,757,143 | 6,033,531 | ||||||
Current maturities of long-term debt and lease financing obligations | (49,174 | ) | (37,311 | ) | ||||
| | | | | | | | |
Long-term debt and lease financing obligations, less current maturities | $ | 5,707,969 | $ | 5,996,220 | ||||
| | | | | | | | |
| | | | | | | | |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Mar. 01, 2014 | ||||||||
Leases | ' | |||||||
Schedule of net book values of assets under capital leases and sale-leasebacks accounted for under the financing method | ' | |||||||
2014 | 2013 | |||||||
Land | $ | 5,063 | $ | 6,692 | ||||
Buildings | 135,581 | 137,206 | ||||||
Leasehold improvements | 1,446 | 1,691 | ||||||
Equipment | 34,305 | 21,316 | ||||||
Accumulated depreciation | (113,536 | ) | (103,381 | ) | ||||
| | | | | | | | |
$ | 62,859 | $ | 63,524 | |||||
| | | | | | | | |
| | | | | | | | |
Schedule of lease finance obligations | ' | |||||||
2014 | 2013 | |||||||
Obligations under financing leases | $ | 102,671 | $ | 107,308 | ||||
Sale-leaseback obligations | 4,740 | 7,876 | ||||||
Less current obligation | (32,240 | ) | (23,334 | ) | ||||
| | | | | | | | |
Long-term lease finance obligations | $ | 75,171 | $ | 91,850 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of minimum lease payments for all properties under a lease agreement | ' | |||||||
Fiscal year | Lease Financing | Operating | ||||||
Obligations | Leases | |||||||
2015 | $ | 40,030 | $ | 996,495 | ||||
2016 | 21,228 | 953,607 | ||||||
2017 | 19,330 | 892,261 | ||||||
2018 | 13,496 | 810,267 | ||||||
2019 | 12,370 | 713,914 | ||||||
Later years | 33,656 | 3,405,091 | ||||||
| | | | | | | | |
Total minimum lease payments | 140,110 | $ | 7,771,635 | |||||
| | | | | | | | |
| | | | | | | | |
Amount representing interest | (32,699 | ) | ||||||
| | | | | | | | |
Present value of minimum lease payments | $ | 107,411 | ||||||
| | | | | | | | |
| | | | | | | | |
Stock_Option_and_Stock_Award_P1
Stock Option and Stock Award Plans (Tables) | 12 Months Ended | |||||||||||||
Mar. 01, 2014 | ||||||||||||||
Stock Option and Stock Award Plans | ' | |||||||||||||
Schedule of weighted average assumptions used for options granted | ' | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected stock price volatility(1) | 85 | % | 85 | % | 79 | % | ||||||||
Expected dividend yield(2) | 0 | % | 0 | % | 0 | % | ||||||||
Risk-free interest rate(3) | 1.45 | % | 0.71 | % | 1.45 | % | ||||||||
Expected option life(4) | 5.5 years | 5.5 years | 5.5 years | |||||||||||
-1 | ||||||||||||||
The expected volatility is based on the historical volatility of the stock price over the most recent period equal to expected life of the option. | ||||||||||||||
-2 | ||||||||||||||
The dividend rate that will be paid out on the underlying shares during the expected term of the options. The Company does not currently pay dividends on its common stock, as such, the dividend rate is assumed to be zero percent. | ||||||||||||||
-3 | ||||||||||||||
The risk free interest rate is equal to the rate available on United States Treasury zero-coupon issues as of the grant date of the option with a remaining term equal to the expected term. | ||||||||||||||
-4 | ||||||||||||||
The period of time for which the option is expected to be outstanding. The Company analyzed historical exercise behavior. | ||||||||||||||
Schedule of stock option transactions | ' | |||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Per Share | Term | |||||||||||||
Outstanding at February 26, 2011 | 74,298 | $ | 2.47 | |||||||||||
Granted | 23,200 | 1.19 | ||||||||||||
Exercised | (896 | ) | 1.02 | |||||||||||
Cancelled | (22,804 | ) | 4.31 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at March 3, 2012 | 73,798 | $ | 1.52 | |||||||||||
| | | | | | | | | | | | | | |
Granted | 12,020 | 1.32 | ||||||||||||
Exercised | (1,535 | ) | 1.06 | |||||||||||
Cancelled | (3,283 | ) | 2.08 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at March 2, 2013 | 81,000 | $ | 1.48 | |||||||||||
| | | | | | | | | | | | | | |
Granted | 4,828 | 2.76 | ||||||||||||
Exercised | (26,873 | ) | 1.24 | |||||||||||
Cancelled | (2,989 | ) | 2.46 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at March 1, 2014 | 55,966 | $ | 1.65 | 6.48 | $ | 276,320 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Vested or expected to vest at March 1, 2014 | 51,761 | $ | 1.67 | 6.38 | $ | 254,692 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at March 1, 2014 | 29,881 | $ | 1.77 | 5.27 | $ | 143,971 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of restricted stock transactions | ' | |||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Balance at February 26, 2011 | 7,078 | $ | 1.12 | |||||||||||
Granted | 8,525 | 1.23 | ||||||||||||
Vested | (3,366 | ) | 1.11 | |||||||||||
Cancelled | (731 | ) | 1.16 | |||||||||||
| | | | | | | | |||||||
Balance at March 3, 2012 | 11,506 | $ | 1.2 | |||||||||||
| | | | | | | | |||||||
Granted | 5,450 | 1.31 | ||||||||||||
Vested | (3,917 | ) | 1.18 | |||||||||||
Cancelled | (362 | ) | 1.26 | |||||||||||
| | | | | | | | |||||||
Balance at March 2, 2013 | 12,677 | $ | 1.25 | |||||||||||
| | | | | | | | |||||||
Granted | 2,743 | 2.79 | ||||||||||||
Vested | (4,152 | ) | 1.23 | |||||||||||
Cancelled | (1,212 | ) | 1.48 | |||||||||||
| | | | | | | | |||||||
Balance at March 1, 2014 | 10,056 | $ | 1.66 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Reclassifications_from_Accumul1
Reclassifications from Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||
Summary of components of accumulated other comprehensive loss and the changes in balances of each component of accumulated other comprehensive loss, net of tax | ' | |||||||||||||||||||
March 1, | March 2, | March 3, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | ||||||||||||||||||
Defined | Accumulated | Defined | Accumulated | Defined | Accumulated | |||||||||||||||
benefit | other | benefit | other | benefit | other | |||||||||||||||
pension | comprehensive | pension | comprehensive | pension | comprehensive | |||||||||||||||
plans | loss | plans | loss | plans | loss | |||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||||
Balance—beginning of period | $ | (61,369 | ) | $ | (61,369 | ) | $ | (52,634 | ) | $ | (52,634 | ) | $ | (30,142 | ) | $ | (30,142 | ) | ||
Other comprehensive income before reclassifications | 19,211 | 19,211 | (13,767 | ) | (13,767 | ) | (24,984 | ) | (24,984 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 4,824 | 4,824 | 5,032 | 5,032 | 2,492 | 2,492 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance—end of period | $ | (37,334 | ) | $ | (37,334 | ) | $ | (61,369 | ) | $ | (61,369 | ) | $ | (52,634 | ) | $ | (52,634 | ) | ||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Summary of effects on net income (loss) of significant amounts classified out of each component of accumulated other comprehensive loss | ' | |||||||||||||||||||
Fiscal Years Ended March 1, 2014, March 2, 2013 and March 3, 2012 | ||||||||||||||||||||
Amount reclassified from | ||||||||||||||||||||
accumulated other | ||||||||||||||||||||
comprehensive loss | ||||||||||||||||||||
Details about accumulated other comprehensive loss components | March 1, | March 2, | March 3, | Affected line item in the consolidated | ||||||||||||||||
2014 | 2013 | 2012 | statements of operations | |||||||||||||||||
(52 Weeks) | (52 Weeks) | (53 Weeks) | ||||||||||||||||||
Defined benefit pension plans | ||||||||||||||||||||
Amortization of unrecognized prior service cost(a) | $ | (240 | ) | $ | (240 | ) | $ | (639 | ) | Selling, general and administrative expenses | ||||||||||
Amortization of unrecognized net loss(a) | (4,584 | ) | (4,792 | ) | (1,853 | ) | Selling, general and administrative expenses | |||||||||||||
| | | | | | | | | | | | |||||||||
(4,824 | ) | (5,032 | ) | (2,492 | ) | Total before income tax expense | ||||||||||||||
— | — | — | Income tax expense(b) | |||||||||||||||||
| | | | | | | | | | | | |||||||||
$ | (4,824 | ) | $ | (5,032 | ) | $ | (2,492 | ) | Net of income tax expense | |||||||||||
| | | | | | | | | | | | |||||||||
| | | | | | | | | | | | |||||||||
(a)—See Note 15, Retirement Plans for additional details. | ||||||||||||||||||||
(b)—Income tax expense is $0 due to the valuation allowance. See Note 5, Income Taxes for additional details. | ||||||||||||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | |||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||
Schedule of net periodic pension expense and other changes recognized in other comprehensive income for the defined benefit pension plans and the nonqualified executive retirement plan | ' | |||||||||||||||||||
Defined Benefit Pension Plan | Nonqualified Executive | |||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Service cost | $ | 3,341 | $ | 2,908 | $ | 2,988 | $ | — | $ | — | $ | 21 | ||||||||
Interest cost | 6,120 | 6,128 | 6,501 | 541 | 616 | 771 | ||||||||||||||
Expected return on plan assets | (6,738 | ) | (6,719 | ) | (6,192 | ) | — | — | — | |||||||||||
Amortization of unrecognized prior service cost | 240 | 240 | 639 | — | — | — | ||||||||||||||
Amortization of unrecognized net loss (gain) | 4,935 | 3,926 | 2,435 | (351 | ) | 866 | (582 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net pension expense(income) | $ | 7,898 | $ | 6,483 | $ | 6,371 | $ | 190 | $ | 1,482 | $ | 210 | ||||||||
Other changes recognized in other comprehensive loss: | ||||||||||||||||||||
Unrecognized net (gain) loss arising during period | $ | (18,860 | ) | $ | 12,901 | $ | 24,664 | $ | (351 | ) | $ | 866 | $ | 595 | ||||||
Prior service cost arising during period | — | — | (275 | ) | — | — | — | |||||||||||||
Amortization of unrecognized prior service costs | (240 | ) | (240 | ) | (639 | ) | — | — | — | |||||||||||
Amortization of unrecognized net (loss) gain | (4,935 | ) | (3,926 | ) | (2,435 | ) | 351 | (866 | ) | 582 | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net amount recognized in other comprehensive loss | (24,035 | ) | 8,735 | 21,315 | — | — | 1,177 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net amount recognized in pension expense and other comprehensive loss | $ | (16,137 | ) | $ | 15,218 | $ | 27,686 | $ | 190 | $ | 1,482 | $ | 1,387 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of reconciliation for both benefit obligation and plan assets of defined benefit plans, as well as funded status and amounts recognized in balance sheet | ' | |||||||||||||||||||
Defined Benefit | Nonqualified Executive | |||||||||||||||||||
Pension Plan | Retirement Plan | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Change in benefit obligations: | ||||||||||||||||||||
Benefit obligation at end of prior year | $ | 158,522 | $ | 142,310 | $ | 14,332 | $ | 14,509 | ||||||||||||
Service cost | 3,341 | 2,908 | — | — | ||||||||||||||||
Interest cost | 6,120 | 6,128 | 541 | 616 | ||||||||||||||||
Distributions | (7,677 | ) | (6,644 | ) | (1,657 | ) | (1,659 | ) | ||||||||||||
Change due to change in assumptions | — | 13,979 | — | 756 | ||||||||||||||||
Actuarial (gain) loss | (11,710 | ) | (159 | ) | (351 | ) | 110 | |||||||||||||
| | | | | | | | | | | | | | |||||||
Benefit obligation at end of year | $ | 148,596 | $ | 158,522 | $ | 12,865 | $ | 14,332 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Change in plan assets: | ||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 114,773 | $ | 108,196 | $ | — | $ | — | ||||||||||||
Employer contributions | 8,000 | 5,583 | 1,655 | 1,659 | ||||||||||||||||
Actual return on plan assets | 13,888 | 9,067 | — | — | ||||||||||||||||
Distributions (including expenses paid by the plan) | (7,677 | ) | (8,073 | ) | (1,655 | ) | (1,659 | ) | ||||||||||||
| | | | | | | | | | | | | | |||||||
Fair value of plan assets at end of year | $ | 128,984 | $ | 114,773 | $ | — | $ | — | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Funded status | $ | (19,612 | ) | $ | (43,749 | ) | $ | (12,865 | ) | $ | (14,331 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
Net amount recognized | $ | (19,612 | ) | $ | (43,749 | ) | $ | (12,865 | ) | $ | (14,331 | ) | ||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Amounts recognized in consolidated balance sheets consisted of: | ||||||||||||||||||||
Prepaid pension cost | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Accrued pension liability | (19,612 | ) | (43,749 | ) | (12,865 | ) | (14,331 | ) | ||||||||||||
| | | | | | | | | | | | | | |||||||
Net amount recognized | $ | (19,612 | ) | $ | (43,749 | ) | $ | (12,865 | ) | $ | (14,331 | ) | ||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||||||||||||||||||
Net actuarial loss | $ | (35,348 | ) | $ | (59,143 | ) | $ | — | $ | — | ||||||||||
Prior service cost | (307 | ) | (547 | ) | — | — | ||||||||||||||
| | | | | | | | | | | | | | |||||||
Amount recognized | $ | (35,655 | ) | $ | (59,690 | ) | $ | — | $ | — | ||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of significant actuarial assumptions used for all defined benefit plans to determine benefit obligation | ' | |||||||||||||||||||
Defined Benefit | Nonqualified | |||||||||||||||||||
Pension Plan | Executive | |||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4.5 | % | 4 | % | 4.5 | % | 4.5 | % | 4 | % | 4.5 | % | ||||||||
Rate of increase in future compensation levels | 4.5 | % | 4.5 | % | 5 | % | N/A | N/A | 3 | % | ||||||||||
Schedule of weighted average assumptions used to determine net benefit cost | ' | |||||||||||||||||||
Defined Benefit Pension Plan | Nonqualified | |||||||||||||||||||
Executive | ||||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||
Discount rate | 4 | % | 4.5 | % | 5.5 | % | 4 | % | 4.5 | % | 5.5 | % | ||||||||
Rate of increase in future compensation levels | 4.5 | % | 5 | % | 5 | % | N/A | N/A | 3 | % | ||||||||||
Expected long-term rate of return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | N/A | N/A | N/A | |||||||||||
Schedule of pension plan asset allocations by asset category | ' | |||||||||||||||||||
March 1, | March 2, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Equity securities | 62 | % | 60 | % | ||||||||||||||||
Fixed income securities | 38 | % | 40 | % | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | 100 | % | 100 | % | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of target allocation of plan assets | ' | |||||||||||||||||||
Category | Target | |||||||||||||||||||
Allocation | ||||||||||||||||||||
U.S. equities | 46 | % | ||||||||||||||||||
International equities | 16 | % | ||||||||||||||||||
U.S. fixed income | 38 | % | ||||||||||||||||||
| | | | | ||||||||||||||||
Total | 100 | % | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Summary of the plan's investments measured at fair value on a recurring basis | ' | |||||||||||||||||||
Fair Value Measurements at March 1, 2014 | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||||||
Assets (Level 1) | ||||||||||||||||||||
Equity Securities | ||||||||||||||||||||
International equity | $ | — | $ | 20,401 | $ | — | $ | 20,401 | ||||||||||||
Large Cap | — | 40,914 | — | 40,914 | ||||||||||||||||
Small-Mid Cap | — | 18,071 | — | 18,071 | ||||||||||||||||
Fixed Income | ||||||||||||||||||||
Long Term Credit Bond Index | — | 47,360 | — | 47,360 | ||||||||||||||||
Other types of investments | ||||||||||||||||||||
Short Term Investments | — | 2,239 | — | 2,239 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | — | $ | 128,985 | $ | — | $ | 128,985 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Fair Value Measurements at March 2, 2013 | ||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total | |||||||||||||||||
Active Markets | Observable | Unobservable | ||||||||||||||||||
for Identical | Inputs (Level 2) | Inputs (Level 3) | ||||||||||||||||||
Assets (Level 1) | ||||||||||||||||||||
Equity Securities | ||||||||||||||||||||
International equity | $ | — | $ | 17,199 | $ | — | $ | 17,199 | ||||||||||||
Large Cap | — | 35,098 | — | 35,098 | ||||||||||||||||
Mid Cap | — | 12,562 | — | 12,562 | ||||||||||||||||
Small Cap | — | 4,236 | — | 4,236 | ||||||||||||||||
Fixed Income | ||||||||||||||||||||
Long Term Credit Bond Index | — | 45,664 | — | 45,664 | ||||||||||||||||
Other types of investments | ||||||||||||||||||||
Short Term Investments | — | 14 | — | 14 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Total | $ | — | $ | 114,773 | $ | — | $ | 114,773 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Schedule of future benefit payments expected to be paid | ' | |||||||||||||||||||
Fiscal Year | Defined Benefit | Nonqualified | ||||||||||||||||||
Pension Plan | Executive | |||||||||||||||||||
Retirement Plan | ||||||||||||||||||||
2015 | $ | 7,378 | $ | 1,722 | ||||||||||||||||
2016 | 7,520 | 1,625 | ||||||||||||||||||
2017 | 7,687 | 1,599 | ||||||||||||||||||
2018 | 7,829 | 1,228 | ||||||||||||||||||
2019 | 8,068 | 1,204 | ||||||||||||||||||
2020 - 2024 | 42,793 | 4,424 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 81,275 | $ | 11,802 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Multiemployer_Plans_that_Provi1
Multiemployer Plans that Provide Pension Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Mar. 01, 2014 | ||||||||||||||||||||||||
Multiemployer Plans that Provide Pension Benefits | ' | |||||||||||||||||||||||
Schedule of multiemployer defined benefit pension plans | ' | |||||||||||||||||||||||
Pension Protection Act | Contributions of | Expiration | ||||||||||||||||||||||
Zone Status | the Company | Date of | ||||||||||||||||||||||
FIP/ RP | Collective- | |||||||||||||||||||||||
Status | Bargaining | |||||||||||||||||||||||
EIN/Pension | Pending/ | Surcharge | Agreement | Minimum | ||||||||||||||||||||
Plan | Implemented | Imposed | Funding | |||||||||||||||||||||
Pension | Number | 2014 | 2013 | 2014 | 2013 | 2012 | Requirements | |||||||||||||||||
1199 SEIU Health Care Employees Pension Fund | 13-3604862-001 | Green— | Green— | No | $ | 14,093 | $ | 9,830 | $ | 9,156 | No | 4/18/15 | Contribution rate of 15.8% of gross wages earned per associate. | |||||||||||
12/31/12 | 12/31/11 | |||||||||||||||||||||||
Southern California United Food and Commercial Workers Unions and Drug Employers Pension Fund | 51-6029925-001 | Red— | Red— | Implemented | 6,476 | 3,416 | 459 | No | 7/12/15 | Contributions of $1.242 per hour worked for pharmacists and $0.563 per hour worked for non pharmacists. | ||||||||||||||
12/31/13 | 12/31/12 | |||||||||||||||||||||||
Northern California Pharmacists, Clerks and Drug Employers Pension Plan | 94-2518312-001 | Green— | Green— | No | 2,900 | 2,858 | 2,937 | No | 7/13/13 | Contributions of $0.57 per hour worked for associates. | ||||||||||||||
12/31/13 | 12/31/12 | |||||||||||||||||||||||
United Food and Commercial Workers Union-Employer Pension Fund | 34-6665155-001 | Red— | Red— | Implemented | 629 | 559 | 529 | No | 12/31/14 | Contribution rate of $1.49 per hour worked. | ||||||||||||||
9/30/13 | 9/30/12 | |||||||||||||||||||||||
United Food and Commercial Workers Union Local 880—Mercantile Employers Joint Pension Fund | 51-6031766-001 | Yellow— | Yellow— | Implemented | 441 | 399 | 322 | No | 12/31/14 | Contribution rate of $1.52 per hour worked. | ||||||||||||||
9/30/13 | 9/30/12 | |||||||||||||||||||||||
Other Funds | 2,078 | 2,725 | 1,191 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
$ | 26,617 | $ | 19,787 | $ | 14,594 | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Schedule of year contributions to plan that exceeded more than 5 percent of the total contributions | ' | |||||||||||||||||||||||
Pension Fund | Year Contributions to Plan Exceeded More Than 5 Percent of | |||||||||||||||||||||||
Total Contributions (as of the Plan's Year-End) | ||||||||||||||||||||||||
Northern California Pharmacists, Clerks and Drug Employers Pension Plan | 12/31/2012 and 12/31/2011 | |||||||||||||||||||||||
Southern California United Food and Commercial Workers Unions and Drug Employers Pension Fund | 12/31/2012 and 12/31/2011 | |||||||||||||||||||||||
United Food and Commercial Workers Union- Employer Pension Fund | 9/30/2012 and 9/30/2011 | |||||||||||||||||||||||
United Food and Commercial Workers Union Local 880—Mercantile Employers Joint Pension Fund | 9/30/2012 and 9/30/2011 |
Supplementary_Cash_Flow_Data_T
Supplementary Cash Flow Data (Tables) | 12 Months Ended | ||||||||||
Mar. 01, 2014 | |||||||||||
Supplementary Cash Flow Data | ' | ||||||||||
Schedule of supplementary cash flow data | ' | ||||||||||
Year Ended | |||||||||||
March 1, | March 2, | March 3, | |||||||||
2014 | 2013 | 2012 | |||||||||
Cash paid for interest (net of capitalized amounts of $197, $399 and $315) | $ | 414,692 | $ | 482,145 | $ | 528,894 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Cash payments (refund) for income taxes, net | $ | 3,191 | $ | (776 | ) | $ | 4,913 | ||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Equipment financed under capital leases | $ | 18,065 | $ | 7,906 | $ | 7,052 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Equipment received for noncash consideration | $ | 2,825 | $ | 3,285 | $ | 3,616 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Preferred stock dividends paid in additional shares | $ | 8,318 | $ | 10,528 | $ | 9,919 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Accrued capital expenditures | $ | 72,841 | $ | 45,456 | $ | 45,454 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Gross borrowings from revolver | $ | 2,668,000 | $ | 1,117,000 | $ | 2,654,000 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Gross repayments to revolver | $ | 2,933,000 | $ | 588,000 | $ | 2,546,000 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Interim_Financial_Results_Unau1
Interim Financial Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 01, 2014 | |||||||||||||||||
Interim Financial Results (Unaudited) | ' | ||||||||||||||||
Schedule of interim financial results (unaudited) | ' | ||||||||||||||||
Fiscal Year 2014 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 6,293,057 | $ | 6,278,165 | $ | 6,357,732 | $ | 6,597,459 | $ | 25,526,413 | |||||||
Cost of goods sold | 4,472,066 | 4,461,804 | 4,557,066 | 4,711,743 | 18,202,679 | ||||||||||||
Selling, general and administrative expenses | 1,609,261 | 1,602,931 | 1,632,299 | 1,716,671 | 6,561,162 | ||||||||||||
Lease termination and impairment charges | 10,972 | 11,390 | 1,672 | 17,270 | 41,304 | ||||||||||||
Interest expense | 113,064 | 106,716 | 102,819 | 101,992 | 424,591 | ||||||||||||
Loss on debt retirements, net | — | 62,172 | 271 | — | 62,443 | ||||||||||||
(Gain) loss on sale of assets, net | (5,180 | ) | (1,885 | ) | (9,331 | ) | 412 | (15,984 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
6,200,183 | 6,243,128 | 6,284,796 | 6,548,088 | 25,276,195 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Income before income taxes | 92,874 | 35,037 | 72,936 | 49,371 | 250,218 | ||||||||||||
Income tax expense (benefit) | 3,212 | 2,210 | 1,388 | (6,006 | ) | 804 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net income | $ | 89,662 | $ | 32,827 | $ | 71,548 | $ | 55,377 | $ | 249,414 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Basic income per share(1) | $ | 0.1 | $ | 0.03 | $ | 0.05 | $ | 0.06 | $ | 0.23 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted income per share(1) | $ | 0.09 | $ | 0.03 | $ | 0.04 | $ | 0.06 | $ | 0.23 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Fiscal Year 2013 | |||||||||||||||||
First | Second | Third | Fourth | Year | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 6,468,287 | $ | 6,230,884 | $ | 6,237,847 | $ | 6,455,245 | $ | 25,392,263 | |||||||
Cost of goods sold | 4,719,516 | 4,520,463 | 4,426,526 | 4,407,482 | 18,073,987 | ||||||||||||
Selling, general and administrative expenses | 1,688,066 | 1,618,169 | 1,612,198 | 1,682,332 | 6,600,765 | ||||||||||||
Lease termination and impairment charges | 12,143 | 7,783 | 14,366 | 36,567 | 70,859 | ||||||||||||
Interest expense | 130,588 | 129,054 | 128,371 | 127,408 | 515,421 | ||||||||||||
Loss on debt retirements, net | 17,842 | — | — | 122,660 | 140,502 | ||||||||||||
(Gain) loss on sale of assets, net | (10,051 | ) | (2,954 | ) | (6,262 | ) | 2,491 | (16,776 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
6,558,104 | 6,272,515 | 6,175,199 | 6,378,940 | 25,384,758 | |||||||||||||
| | | | | | | | | | | | | | | | | |
(Loss) income before income taxes | (89,817 | ) | (41,631 | ) | 62,648 | 76,305 | 7,505 | ||||||||||
Income tax (benefit) expense | (61,729 | ) | (2,866 | ) | 777 | (46,782 | ) | (110,600 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Net (loss) income | $ | (28,088 | ) | $ | (38,765 | ) | $ | 61,871 | $ | 123,087 | $ | 118,105 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Basic (loss) income per share(1) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.07 | $ | 0.14 | $ | 0.12 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted (loss) income per share(1) | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.07 | $ | 0.13 | $ | 0.12 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
Income (loss) per share amounts for each quarter may not necessarily total to the yearly income (loss) per share due to the weighting of shares outstanding on a quarterly and year-to-date basis. | |||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Mar. 01, 2014 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Schedule of carrying amounts and fair values of financial instruments | ' | |||||||||||||
2014 | 2013 | |||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||
Amount | Value | Amount | Value | |||||||||||
Variable rate indebtedness | $ | 2,522,293 | $ | 2,524,508 | $ | 2,296,001 | $ | 2,275,694 | ||||||
Fixed rate indebtedness | $ | 3,127,439 | $ | 3,569,777 | $ | 3,622,351 | $ | 3,912,903 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
store | store | ||||||||||
Description of Business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Numbers of stores in operation | 4,587 | ' | ' | ' | ' | ' | ' | ' | 4,587 | ' | ' |
Pharmacy sales | ' | ' | ' | ' | ' | ' | ' | ' | $17,239,436 | $17,083,811 | $17,725,645 |
Front end sales | ' | ' | ' | ' | ' | ' | ' | ' | 8,168,922 | 8,200,022 | 8,293,643 |
Other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 118,055 | 108,430 | 101,934 |
Revenues | $6,597,459 | $6,357,732 | $6,278,165 | $6,293,057 | $6,455,245 | $6,237,847 | $6,230,884 | $6,468,287 | $25,526,413 | $25,392,263 | $26,121,222 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | ||
Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | |
Fiscal Year | ' | ' | ' |
Length of reporting period | '364 days | '364 days | '371 days |
Prescription drugs | Sales | ' | ' | ' |
Product Class | ' | ' | ' |
Percentage of sales | 67.90% | 67.60% | 68.10% |
Over-the-counter medications and personal care | Sales | ' | ' | ' |
Product Class | ' | ' | ' |
Percentage of sales | 9.80% | ' | ' |
Health and beauty aids | Sales | ' | ' | ' |
Product Class | ' | ' | ' |
Percentage of sales | 5.10% | ' | ' |
General merchandise and other | Sales | ' | ' | ' |
Product Class | ' | ' | ' |
Percentage of sales | 17.20% | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) | 12 Months Ended |
Mar. 01, 2014 | |
Allowance for Uncollectible Receivables | ' |
Percentage of prescription sales made to customers who are covered by third-party payors | 97.00% |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
point | |||
Intangible Assets | ' | ' | ' |
Estimated useful life of prescription files acquired in business combinations | '10 years | ' | ' |
Estimated useful life of purchased prescription files acquired in other than business combinations | '5 years | ' | ' |
Deferred Financing Costs | ' | ' | ' |
Amortization expenses of deferred financing costs | $15,259 | $21,896 | $22,049 |
Revenue Recognition | ' | ' | ' |
Number of points awarded for each dollar spent towards front end merchandise | 1 | ' | ' |
Number of points awarded for each qualifying prescription | 25 | ' | ' |
Accumulated number of points in a calendar year to achieve the "Gold" tier | 1,000 | ' | ' |
Percentage discount on qualifying purchases of front end merchandise on achieving "Gold" tier | 20.00% | ' | ' |
Deferred revenue | 103,562 | 100,883 | ' |
Deferred revenue included in other current liabilities | 83,668 | 78,696 | ' |
Deferred revenue included in noncurrent liabilities | 19,894 | 22,187 | ' |
Advertising | ' | ' | ' |
Advertising expenses, net of vendor advertising allowances | 322,843 | 335,779 | 369,405 |
Minimum | ' | ' | ' |
Insurance | ' | ' | ' |
Workers compensation occurrences | 1,000 | ' | ' |
General liability occurrences | 2,000 | ' | ' |
Buildings | Minimum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Useful life | '30 years | ' | ' |
Buildings | Maximum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Useful life | '45 years | ' | ' |
Equipment | Minimum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Useful life | '3 years | ' | ' |
Equipment | Maximum | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Useful life | '15 years | ' | ' |
Internal-use software | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Capitalized costs | $6,547 | $5,844 | $6,371 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 |
derivative | derivative | Pharmacy sales | Pharmacy sales | Pharmacy sales | Pharmacy sales | Pharmacy sales | Pharmacy sales | Pharmacy sales | Purchases | |
Customers | Customers | Customers | Customers | Customers | Customers | Customers | Suppliers | |||
Top five third party payors | Largest third party payor | Largest third party payor | Largest third party payor | Medicaid agencies and related managed care Medicaid payors | Largest Medicaid agency | Medicare Part D | McKesson Corp. | |||
Express Scripts | Express Scripts | Medco Health Solutions | ||||||||
Significant Concentrations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of concentration risk | ' | ' | 65.80% | 31.60% | 35.30% | 22.90% | 13.70% | 1.10% | 30.60% | 88.20% |
Derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate swap arrangements or other derivatives held | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Loss_Per_Share_Details
Income (Loss) Per Share (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Numerator for income (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | $55,377 | $71,548 | $32,827 | $89,662 | $123,087 | $61,871 | ($38,765) | ($28,088) | $249,414 | $118,105 | ($368,571) |
Accretion of redeemable preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | -77 | -102 | -102 |
Cumulative preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,318 | -10,528 | -9,919 |
Conversion of Series G and H preferred stock | -25,603 | ' | ' | ' | ' | ' | ' | ' | ' | -25,603 | ' | ' |
Income (loss) attributable to common stockholders-basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,416 | 107,475 | -378,592 |
Add back-interest on convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,456 | ' | ' |
Income (loss) attributable to common stockholders-diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | $220,872 | $107,475 | ($378,592) |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 922,199 | 889,562 | 885,819 |
Outstanding options and restricted shares, net (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,093 | 17,697 | ' |
Convertible notes (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,800 | ' | ' |
Diluted weighted average shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 979,092 | 907,259 | 885,819 |
Basic income (loss) per share (in dollars per share) | ' | $0.06 | $0.05 | $0.03 | $0.10 | $0.14 | $0.07 | ($0.05) | ($0.03) | $0.23 | $0.12 | ($0.43) |
Diluted income (loss) per share (in dollars per share) | ' | $0.06 | $0.04 | $0.03 | $0.09 | $0.13 | $0.07 | ($0.05) | ($0.03) | $0.23 | $0.12 | ($0.43) |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,044 | 68,364 | 129,793 |
Stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,044 | 10,455 | 73,798 |
Convertible preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,109 | 31,195 |
Convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,800 | 24,800 |
Restricted shares and restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 11,506 | ' |
Lease_Termination_and_Impairme2
Lease Termination and Impairment Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | |
store | store | ||||||||||
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of pharmacy business affected by rate compression | ' | ' | ' | ' | ' | ' | ' | ' | 97.00% | ' | ' |
Lease termination and impairment charges | $17,270,000 | $1,672,000 | $11,390,000 | $10,972,000 | $36,567,000 | $14,366,000 | $7,783,000 | $12,143,000 | $41,304,000 | $70,859,000 | $100,053,000 |
Number of stores | 4,587 | ' | ' | ' | ' | ' | ' | ' | 4,587 | ' | ' |
Lease termination charges | ' | ' | ' | ' | ' | ' | ' | ' | 8,750,000 | ' | ' |
Revenues and operating losses of closed stores or stores approved for closure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | 6,597,459,000 | 6,357,732,000 | 6,278,165,000 | 6,293,057,000 | 6,455,245,000 | 6,237,847,000 | 6,230,884,000 | 6,468,287,000 | 25,526,413,000 | 25,392,263,000 | 26,121,222,000 |
Income (loss) before income taxes | 49,371,000 | 72,936,000 | 35,037,000 | 92,874,000 | 76,305,000 | 62,648,000 | -41,631,000 | -89,817,000 | 250,218,000 | 7,505,000 | -392,257,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 403,741,000 | 414,111,000 | 440,582,000 |
Active stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 1,927,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,927,000,000 | ' | ' |
Number of stores | 4,587 | ' | ' | ' | 4,623 | ' | ' | ' | 4,587 | 4,623 | 4,667 |
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 13,077,000 | 24,892,000 | 51,998,000 |
Total number of locations | 434 | ' | ' | ' | 564 | ' | ' | ' | 434 | 564 | 732 |
Number of store closures requiring store lease closing provision | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' |
Impairment charges | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stores expected to be closed in next fiscal year | 40 | ' | ' | ' | ' | ' | ' | ' | 40 | ' | ' |
Impairment charges | Active stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 11,748,000 | 23,973,000 | 43,353,000 |
Number of stores | 396 | ' | ' | ' | 530 | ' | ' | ' | 396 | 530 | 663 |
Cumulative active stores with impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 1,105 | 1,118 | 1,091 |
Period considered for recording impairment charges on the basis of operating loss | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Impairment charges | Closed facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 1,329,000 | 919,000 | 8,645,000 |
Number of facilities | 38 | ' | ' | ' | 34 | ' | ' | ' | 38 | 34 | 69 |
Actual and approved store closings | Closed facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 531,000 | 325,000 | 2,283,000 |
Number of facilities | 31 | ' | ' | ' | 29 | ' | ' | ' | 31 | 29 | 55 |
Actual and approved relocations | Closed facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 499,000 |
Number of facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Existing surplus properties | Closed facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 798,000 | 594,000 | 5,863,000 |
Number of facilities | 7 | ' | ' | ' | 5 | ' | ' | ' | 7 | 5 | 12 |
Additional current period charges for stores previously impaired in prior periods | Active stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 4,162,000 | 5,835,000 | 9,822,000 |
Number of stores | 378 | ' | ' | ' | 469 | ' | ' | ' | 378 | 469 | 591 |
Number of stores fully impaired | ' | ' | ' | ' | ' | ' | ' | ' | 375 | 464 | 583 |
Charges for new, relocated and remodeled stores that did not meet their asset recoverability test in the current period | Active stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 4,028,000 | 9,190,000 | 18,926,000 |
Number of stores | 1 | ' | ' | ' | 14 | ' | ' | ' | 1 | 14 | 19 |
Number of stores fully impaired | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 14 | 19 |
Period considered for impairment of relocated stores | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Charges for new, relocated and remodeled stores that did not meet their asset recoverability test in the current period | Active stores | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period considered for recording impairment charges on the basis of operating loss | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Period considered for impairment of new stores | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Charges for the remaining stores that did not meet their asset recoverability test in the current period | Active stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 3,558,000 | 8,948,000 | 14,605,000 |
Number of stores | 17 | ' | ' | ' | 47 | ' | ' | ' | 17 | 47 | 53 |
Number of stores fully impaired | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 43 | 43 |
Charges for the remaining stores that did not meet their asset recoverability test in the current period | Active stores | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period considered for recording impairment charges on the basis of operating loss | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Stores impaired in prior periods with no current charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores | 709 | ' | ' | ' | 588 | ' | ' | ' | 709 | 588 | 428 |
Stores with a current period charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores | 396 | ' | ' | ' | 530 | ' | ' | ' | 396 | 530 | 663 |
Lease termination charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stores | 15 | ' | ' | ' | 14 | ' | ' | ' | 15 | 14 | 23 |
Lease termination charges | ' | ' | ' | ' | ' | ' | ' | ' | 28,227,000 | 45,967,000 | 48,055,000 |
Closed store and distribution center charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance-beginning of period | ' | ' | ' | 323,757,000 | ' | ' | ' | 367,864,000 | 323,757,000 | 367,864,000 | 405,350,000 |
Provision for present value of noncancellable lease payments of closed stores | ' | ' | ' | ' | ' | ' | ' | ' | 11,646,000 | 14,440,000 | 11,832,000 |
Changes in assumptions about future sublease income, terminations and changes in interest rates | ' | ' | ' | ' | ' | ' | ' | ' | -4,343,000 | 9,023,000 | 11,305,000 |
Interest accretion | ' | ' | ' | ' | ' | ' | ' | ' | 21,250,000 | 23,246,000 | 26,084,000 |
Cash payments, net of sublease income | ' | ' | ' | ' | ' | ' | ' | ' | -68,040,000 | -90,816,000 | -86,707,000 |
Balance-end of period | 284,270,000 | ' | ' | ' | 323,757,000 | ' | ' | ' | 284,270,000 | 323,757,000 | 367,864,000 |
Closed stores or stores approved for closure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and operating losses of closed stores or stores approved for closure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 89,416,000 | 139,082,000 | 258,263,000 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 100,889,000 | 153,187,000 | 284,803,000 |
Gain from sale of assets | ' | ' | ' | ' | ' | ' | ' | ' | -13,074,000 | -19,894,000 | -12,206,000 |
Other (income) expenses | ' | ' | ' | ' | ' | ' | ' | ' | -8,268,000 | 622,000 | -7,874,000 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 9,869,000 | 5,167,000 | -6,460,000 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 607,000 | 1,342,000 | 3,038,000 |
Inventory liquidation charges | ' | ' | ' | ' | ' | ' | ' | ' | $621,000 | $708,000 | $598,000 |
Lease_Termination_and_Impairme3
Lease Termination and Impairment Charges (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Fair value of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Losses | ($17,270) | ($1,672) | ($11,390) | ($10,972) | ($36,567) | ($14,366) | ($7,783) | ($12,143) | ($41,304) | ($70,859) | ($100,053) |
Nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets held and used, impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | -12,279 | -24,298 | ' |
Long-lived assets held for sale, impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | -798 | -594 | ' |
Total Losses | ' | ' | ' | ' | ' | ' | ' | ' | -13,077 | -24,892 | ' |
Nonrecurring basis | Significant Observable Inputs (Level 2) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets held and used | 42 | ' | ' | ' | 1,018 | ' | ' | ' | 42 | 1,018 | ' |
Long-lived assets held for sale | 14,656 | ' | ' | ' | 1,842 | ' | ' | ' | 14,656 | 1,842 | ' |
Total long-lived assets | 14,698 | ' | ' | ' | 2,860 | ' | ' | ' | 14,698 | 2,860 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets held and used | 15,051 | ' | ' | ' | 21,739 | ' | ' | ' | 15,051 | 21,739 | ' |
Total long-lived assets | 15,051 | ' | ' | ' | 21,739 | ' | ' | ' | 15,051 | 21,739 | ' |
Nonrecurring basis | Fair Values as of Impairment Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets held and used | 15,093 | ' | ' | ' | 22,757 | ' | ' | ' | 15,093 | 22,757 | ' |
Long-lived assets held for sale | 14,656 | ' | ' | ' | 1,842 | ' | ' | ' | 14,656 | 1,842 | ' |
Total long-lived assets | $29,749 | ' | ' | ' | $24,599 | ' | ' | ' | $29,749 | $24,599 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Non-financial assets measured on a non-recurring basis | ' | ' |
Carrying value of total long-term indebtedness | $5,649,732 | $5,918,352 |
Outstanding derivative financial instruments | 0 | 0 |
Nonrecurring basis | Level 1 | ' | ' |
Non-financial assets measured on a non-recurring basis | ' | ' |
Estimated fair value of total long-term indebtedness | $6,094,285 | $6,188,597 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Current tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($6,305) | ' |
State | ' | ' | ' | ' | ' | ' | ' | ' | 4,748 | 7,928 | 3,654 |
Total current tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 4,748 | 1,623 | 3,654 |
Deferred tax and other: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | -61,544 | 1,729 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -30,609 | -50,679 | -29,069 |
Tax expense recorded as an increase of additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | 26,665 | ' | ' |
Total deferred tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -3,944 | -112,223 | -27,340 |
Total income tax expense (benefit) | -6,006 | 1,388 | 2,210 | 3,212 | -46,782 | 777 | -2,866 | -61,729 | 804 | -110,600 | -23,686 |
Reconciliation of the expected statutory federal tax and the total income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal statutory tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Expected federal statutory expense at 35% | ' | ' | ' | ' | ' | ' | ' | ' | 87,576 | 2,626 | -137,279 |
Nondeductible expenses | ' | ' | ' | ' | ' | ' | ' | ' | 857 | 1,897 | 2,408 |
State income taxes, net | ' | ' | ' | ' | ' | ' | ' | ' | 44,366 | 39,470 | 11,492 |
Decrease of previously recorded liabilities | ' | ' | ' | ' | ' | ' | ' | ' | -21,101 | -91,881 | -17,771 |
Nondeductible compensation | ' | ' | ' | ' | ' | ' | ' | ' | 44,244 | ' | ' |
Recoverable federal tax due to special 5-year NOL carryback | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,305 | ' |
Release of indemnification asset | ' | ' | ' | ' | ' | ' | ' | ' | 5,941 | 37,324 | ' |
Indemnification receipt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 587 | ' |
Valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | -161,079 | -94,318 | 117,464 |
Total income tax expense (benefit) | -6,006 | 1,388 | 2,210 | 3,212 | -46,782 | 777 | -2,866 | -61,729 | 804 | -110,600 | -23,686 |
Deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | 62,973 | ' | ' | ' | 62,745 | ' | ' | ' | 62,973 | 62,745 | ' |
Accrued expenses | 204,346 | ' | ' | ' | 214,110 | ' | ' | ' | 204,346 | 214,110 | ' |
Liability for lease exit costs | 116,803 | ' | ' | ' | 142,456 | ' | ' | ' | 116,803 | 142,456 | ' |
Pension, retirement and other benefits | 174,917 | ' | ' | ' | 219,515 | ' | ' | ' | 174,917 | 219,515 | ' |
Long-lived assets | 424,290 | ' | ' | ' | 374,101 | ' | ' | ' | 424,290 | 374,101 | ' |
Other | 1,989 | ' | ' | ' | 2,079 | ' | ' | ' | 1,989 | 2,079 | ' |
Credits | 60,951 | ' | ' | ' | 62,121 | ' | ' | ' | 60,951 | 62,121 | ' |
Net operating losses | 1,428,751 | ' | ' | ' | 1,558,694 | ' | ' | ' | 1,428,751 | 1,558,694 | ' |
Total gross deferred tax assets | 2,475,020 | ' | ' | ' | 2,635,821 | ' | ' | ' | 2,475,020 | 2,635,821 | ' |
Valuation allowance | -2,060,811 | ' | ' | ' | -2,223,675 | ' | ' | ' | -2,060,811 | -2,223,675 | ' |
Total deferred tax assets | 414,209 | ' | ' | ' | 412,146 | ' | ' | ' | 414,209 | 412,146 | ' |
Deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventory | 414,209 | ' | ' | ' | 412,146 | ' | ' | ' | 414,209 | 412,146 | ' |
Total gross deferred tax liabilities | 414,209 | ' | ' | ' | 412,146 | ' | ' | ' | 414,209 | 412,146 | ' |
Reconciliation of beginning and ending amount of unrecognized tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits at beginning of the period | ' | ' | ' | 30,020 | ' | ' | ' | 247,722 | 30,020 | 247,722 | 286,952 |
Increases to prior year tax positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,305 | ' |
Decreases to tax positions in prior periods | ' | ' | ' | ' | ' | ' | ' | ' | -3,215 | -196,214 | -11,125 |
Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,655 | ' |
Lapse of statute of limitations | ' | ' | ' | ' | ' | ' | ' | ' | -16,662 | -24,138 | -28,105 |
Unrecognized tax benefits balance at end of the period | 10,143 | ' | ' | ' | 30,020 | ' | ' | ' | 10,143 | 30,020 | 247,722 |
Unrecognized tax benefits which would impact effective tax rate, if recognized | 876 | ' | ' | ' | 14,651 | ' | ' | ' | 876 | 14,651 | 83,804 |
Recoverable indemnification asset from Jean Coutu Group | $195 | ' | ' | ' | $30,710 | ' | ' | ' | $195 | $30,710 | $156,797 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Income Taxes | ' | ' | ' |
Interest and penalties related to tax contingencies recognized as income tax (benefit) expense | ($16,833) | ($43,069) | ($2,113) |
Accrued income tax-related interest and penalties | $5,364 | $22,197 | ' |
Period of state income tax returns subject to examination, low end of range | '3 years | ' | ' |
Period of state income tax returns subject to examination, high end of range | '5 years | ' | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 |
Net Operating Losses and Tax Credits | ' | ' |
Amount of deduction under federal and state net operating loss carryforwards | $18,365 | ' |
Alternative minimum tax credit carryforwards | 3,221 | ' |
Period of cumulative loss | '3 years | '3 years |
Federal | ' | ' |
Net Operating Losses and Tax Credits | ' | ' |
Net operating loss carryforwards | 3,507,186 | ' |
Federal business tax credit carryforwards | 50,595 | ' |
Federal | Net Operating Losses expiration period 2020 and 2022 | ' | ' |
Net Operating Losses and Tax Credits | ' | ' |
Net operating losses expiration amount | 1,096,013 | ' |
Federal | Net Operating Losses expiration period 2028 and 2032 | ' | ' |
Net Operating Losses and Tax Credits | ' | ' |
Net operating losses expiration amount | 1,519,062 | ' |
State | ' | ' |
Net Operating Losses and Tax Credits | ' | ' |
Net operating loss carryforwards | $4,476,975 | ' |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable | ' | ' |
Allowance for uncollectable accounts | $26,873 | $28,271 |
Inventory_Details
Inventory (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Inventory | ' | ' | ' | ' | ' |
Inventories, last-in, first-out (LIFO) cost flow assumption | $1,018,581 | $915,241 | $1,018,581 | $915,241 | ' |
LIFO charge (credit) | 44,142 | -175,384 | 104,142 | -147,882 | 188,722 |
Amount of decrease in the cost of sales due to the effect of LIFO inventory liquidation | ' | ' | $13,894 | $4,316 | $11,004 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | $5,140,827 | $4,865,357 | ' |
Accumulated depreciation | -3,183,498 | -2,969,707 | ' |
Property, plant and equipment, net | 1,957,329 | 1,895,650 | ' |
Depreciation expense | 284,603 | 286,374 | 296,792 |
Carrying amount of assets to be disposed | 1,887 | 14,702 | ' |
Land | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 233,098 | 243,413 | ' |
Buildings | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 753,633 | 753,952 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 1,890,369 | 1,733,607 | ' |
Equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | 2,194,339 | 2,079,372 | ' |
Construction in progress | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment, gross | $69,388 | $55,013 | ' |
Other_Intangibles_Details
Other Intangibles (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Finite-lived intangible assets | ' | ' | ' |
Gross Carrying Amount | $1,987,377 | $1,909,628 | ' |
Accumulated Amortization | -1,556,150 | -1,445,224 | ' |
Unfavorable lease intangibles | 62,687 | 70,195 | ' |
Amortization expense for intangible assets and liabilities | 119,138 | 127,737 | 143,790 |
Anticipated annual amortization expense for intangible assets and liabilities | ' | ' | ' |
2015 | 105,149 | ' | ' |
2016 | 93,337 | ' | ' |
2017 | 80,052 | ' | ' |
2018 | 42,113 | ' | ' |
2019 | 16,322 | ' | ' |
Favorable leases and other | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' |
Gross Carrying Amount | 634,320 | 623,541 | ' |
Accumulated Amortization | -447,608 | -413,556 | ' |
Remaining Weighted Average Amortization Period | '9 years | '10 years | ' |
Prescription files | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' |
Gross Carrying Amount | 1,353,057 | 1,286,087 | ' |
Accumulated Amortization | ($1,108,542) | ($1,031,668) | ' |
Remaining Weighted Average Amortization Period | '4 years | '4 years | ' |
Accrued_Salaries_Wages_and_Oth2
Accrued Salaries, Wages and Other Current Liabilities (Details) (USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Salaries, Wages and Other Current Liabilities | ' | ' |
Accrued wages, benefits and other personnel costs | $449,585 | $437,222 |
Accrued interest | 69,193 | 76,164 |
Accrued sales and other taxes payable | 133,357 | 132,767 |
Accrued store expense | 238,324 | 228,276 |
Other | 275,400 | 281,886 |
Accrued salaries, wages and other current liabilities | $1,165,859 | $1,156,315 |
Indebtedness_and_Credit_Agreem2
Indebtedness and Credit Agreement (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 | Mar. 02, 2013 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | Mar. 02, 2013 | Mar. 02, 2013 | Nov. 29, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 14, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 02, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Jun. 21, 2013 | Jun. 21, 2013 | Jun. 21, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Feb. 28, 2013 | Aug. 31, 2013 | Mar. 02, 2013 | Feb. 28, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Mar. 02, 2013 | Mar. 01, 2014 | Jul. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 31, 2012 | Mar. 03, 2012 | Feb. 29, 2012 | Aug. 31, 2011 | Jun. 30, 2012 | 31-May-12 | Aug. 31, 2011 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Feb. 28, 2013 | Aug. 31, 2011 | Feb. 28, 2013 | 31-May-12 | Feb. 29, 2012 | Aug. 31, 2011 |
Class A Cumulative Preferred Stock | Rite Aid Lease Management Company | Rite Aid Lease Management Company | Senior secured credit facility | Senior secured credit facility | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Tranche 6 Term Loan due February 2020 | Tranche 6 Term Loan due February 2020 | Tranche 6 Term Loan due February 2020 | Tranche 7 Term Loan due February 2020 | Tranche 7 Term Loan due February 2020 | Tranche 7 Term Loan due February 2020 | 8.00% senior secured notes (senior lien) due August 2020 | 8.00% senior secured notes (senior lien) due August 2020 | 7.5% senior secured notes (second lien) due March 2017 | 7.5% senior secured notes (second lien) due March 2017 | 7.5% senior secured notes (second lien) due March 2017 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 2 Term Loan (second lien) due June 2021 | Tranche 2 Term Loan (second lien) due June 2021 | Tranche 2 Term Loan (second lien) due June 2021 | Tranche 2 Term Loan (second lien) due June 2021 | 10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,160 and $1,364) | 10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,160 and $1,364) | Other secured | Other secured | 9.75% senior secured notes (senior lien) due June 2016 | 7.5% senior secured notes (second lien) due March 2017, 6.75% senior notes due June 2021 and 9.5% senior notes due June 2017 | 9.75% senior secured notes due June 2016, 10.375% senior secured notes due July 2016, 6.875% senior debentures due August 2013 and 9.25% senior notes due June 2013 | 10.375% senior secured notes (second lien) due July 2016 | Guaranteed Unsecured Debt | Guaranteed Unsecured Debt | 9.5% senior notes due June 2017 | 9.5% senior notes due June 2017 | 9.5% senior notes due June 2017 | 6.75% senior notes due June 2021 | 6.75% senior notes due June 2021 | 9.25% senior notes due March 2020 | 9.25% senior notes due March 2020 | 8.625% senior notes due March, 2015 | 8.625% senior notes due March, 2015 | 8.625% senior notes due March, 2015 | 8.625% senior notes due March, 2015 | 9.375% senior notes due December 2015 | 9.375% senior notes due December 2015 | 9.375% senior notes due December 2015 | Unguaranteed Unsecured Debt | Unguaranteed Unsecured Debt | 8.5% convertible notes due May 2015 | 8.5% convertible notes due May 2015 | 7.7% notes due February 2027 | 7.7% notes due February 2027 | 6.875% fixed-rate senior notes due December 2028 | 6.875% fixed-rate senior notes due December 2028 | 6.875% senior debentures due August 2013 | 6.875% senior debentures due August 2013 | 9.25% senior notes due June 2013 | 9.25% senior notes due June 2013 | 9.25% senior notes due June 2013 | 8.625% senior notes due March 2015, 9.375% senior notes due December 2015 and 6.875% senior debentures due August 2013 | ||||||||
Rite Aid Lease Management Company | Class A Cumulative Preferred Stock | Minimum | Maximum | LIBOR | LIBOR | LIBOR | Citibank's base rate | Citibank's base rate | Citibank's base rate | LIBOR | Subsequent Events | LIBOR | Citibank's base rate | LIBOR | Citibank's base rate | LIBOR | Citibank's base rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness and credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,446,457 | $3,719,934 | $400,000 | $665,000 | ' | ' | ' | ' | ' | ' | ' | ' | $1,152,293 | $1,161,000 | ' | ' | ' | ' | $650,000 | $650,000 | ' | ' | $500,000 | $470,000 | $470,000 | ' | ' | $500,000 | ' | ' | ' | $268,840 | $268,636 | $5,324 | $5,298 | ' | ' | ' | ' | $1,716,087 | $1,711,230 | ' | ' | $804,471 | $810,000 | ' | $906,087 | $906,759 | ' | ' | ' | ' | ' | ' | ' | $487,188 | $487,188 | $64,188 | $64,188 | $295,000 | $295,000 | $128,000 | $128,000 | ' | ' | ' | ' | ' | ' |
Lease financing obligations | ' | ' | 115,179 | ' | 107,411 | 115,179 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | ' | ' | 6,033,531 | ' | 5,757,143 | 6,033,531 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities of long-term debt and lease financing obligations | ' | ' | -37,311 | ' | -49,174 | -37,311 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt and lease financing obligations, less current maturities | ' | ' | 5,996,220 | ' | 5,707,969 | 5,996,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,152,293 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 270,000 | 270,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 810,000 | ' | 810,000 | 902,000 | 902,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 421,000 | 481,000 | ' |
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,160 | 1,364 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,529 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,087 | 4,759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | 7.50% | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% | 10.25% | ' | ' | 9.75% | ' | ' | 10.38% | ' | ' | ' | ' | 9.50% | 6.75% | 6.75% | 9.25% | 9.25% | 8.63% | ' | 8.63% | 8.63% | 9.38% | 9.38% | 9.38% | ' | ' | 8.50% | 8.50% | 7.70% | 7.70% | 6.88% | 6.88% | 6.88% | 6.88% | 9.25% | 9.25% | 9.25% | ' |
Credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,795,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate for variable interest rate | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | 'Citibank's base rate | ' | ' | ' | ' | 'LIBOR | ' | 'LIBOR | 'Citibank's base rate | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Citibank's base rate | ' | ' | 'LIBOR | 'Citibank's base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage points added to the reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 2.75% | ' | 1.25% | 1.75% | ' | ' | ' | ' | 2.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | 4.75% | 3.75% | ' | ' | 3.88% | 2.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fee payable on daily unused revolver availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,874 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,315,126 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold availability on revolving credit facility to trigger fixed charge coverage requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum fixed charge coverage ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | 100.00% | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 419,237 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 410,000 | ' | ' | 470,000 | ' | ' | ' | 739,642 | ' | ' | ' | ' | ' | ' | ' | 404,844 | ' | ' | 296,269 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180,277 | ' | ' | ' | ' | ' |
Repayment of senior secured notes, including call premium and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,154 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 171,432 | ' | ' | 72,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of senior notes, including call premium and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,440 | ' | ' | ' | ' | ' | ' | 55,644 | ' | ' | ' | -108,731 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,147 | ' | ' | ' |
Preferred stock outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | 213,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes redeemed and discharged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63,416 | ' | 6,015 | ' | ' | ' |
Amount of debt repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 257,261 | ' | ' | 401,999 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 404,844 | 41,000 | ' | 296,269 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | 119,119 | 4,496 | ' | ' | ' | ' |
Preferred stock value included in other non-current liabilities | ' | ' | 963,663 | ' | 843,152 | 963,663 | ' | ' | ' | 20,763 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of preferred stock, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on debt retirement | -271 | -62,172 | -122,660 | -17,842 | -62,443 | -140,502 | -33,576 | ' | ' | -271 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -62,172 | -122,660 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -16,066 | ' | ' | ' | -17,842 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,924 |
Interest Rates and Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual weighted average rate (as a percent) | ' | ' | 7.10% | ' | 6.40% | 7.10% | 7.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | 16,934 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | 75,798 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | ' | ' | 11,610 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | ' | ' | 411,610 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | ' | ' | ' | ' | 5,130,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | ' | ' | ' | ' | $5,130,853 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
store | store | store | |
Leases | ' | ' | ' |
Total rental expense, net of sublease income | $952,777 | $951,239 | $976,892 |
Sublease income | 8,369 | 8,536 | 8,866 |
Contingent rental | 18,679 | 21,026 | 22,659 |
Number of operating stores sold | 1 | 2 | 2 |
Proceeds from sale of owned properties | 3,989 | 6,355 | 6,038 |
Gain (loss) on sale of assets | $269 | $1,818 | ($3,896) |
Minimum | ' | ' | ' |
Leases | ' | ' | ' |
Initial lease terms under noncancellable operating and capital leases | '5 years | ' | ' |
Initial terms of noncancellable operating lease | '3 years | ' | ' |
Sale leaseback lease terms | '20 years | '12 years | '7 years |
Maximum | ' | ' | ' |
Leases | ' | ' | ' |
Initial lease terms under noncancellable operating and capital leases | '22 years | ' | ' |
Initial terms of noncancellable operating lease | '10 years | ' | ' |
Sale leaseback lease terms | ' | '20 years | '10 years |
Leases_Details_2
Leases (Details 2) (USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Net book values of assets under capital leases and sale-leasebacks | ' | ' |
Accumulated depreciation | ($113,536) | ($103,381) |
Net value | 62,859 | 63,524 |
Obligations under financing leases | 102,671 | 107,308 |
Sale-leaseback obligations | 4,740 | 7,876 |
Less current obligation | -32,240 | -23,334 |
Long-term lease finance obligations | 75,171 | 91,850 |
Minimum payments for Lease Financing Obligations | ' | ' |
2015 | 40,030 | ' |
2016 | 21,228 | ' |
2017 | 19,330 | ' |
2018 | 13,496 | ' |
2019 | 12,370 | ' |
Later years | 33,656 | ' |
Total minimum lease payments | 140,110 | ' |
Amount representing interest | -32,699 | ' |
Present value of minimum lease payments | 107,411 | ' |
Minimum payments for Operating Leases | ' | ' |
2015 | 996,495 | ' |
2016 | 953,607 | ' |
2017 | 892,261 | ' |
2018 | 810,267 | ' |
2019 | 713,914 | ' |
Later years | 3,405,091 | ' |
Total minimum lease payments | 7,771,635 | ' |
Land | ' | ' |
Net book values of assets under capital leases and sale-leasebacks | ' | ' |
Gross value | 5,063 | 6,692 |
Buildings | ' | ' |
Net book values of assets under capital leases and sale-leasebacks | ' | ' |
Gross value | 135,581 | 137,206 |
Leasehold improvements | ' | ' |
Net book values of assets under capital leases and sale-leasebacks | ' | ' |
Gross value | 1,446 | 1,691 |
Equipment | ' | ' |
Net book values of assets under capital leases and sale-leasebacks | ' | ' |
Gross value | $34,305 | $21,316 |
Stock_Option_and_Stock_Award_P2
Stock Option and Stock Award Plans (Details) (USD $) | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 | Feb. 26, 2011 | Feb. 26, 2011 | Feb. 26, 2011 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 01, 2014 |
Maximum | Stock options | Stock options | Stock options | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | 1999 Plan | 2000 Plan | 2001 Plan | 2004 Omnibus Equity Plan | 2006 Omnibus Equity Plan | 2010 Omnibus Equity Plan | 2012 Omnibus Equity Plan | ||||
Year one | Year two | Year three | Maximum | ||||||||||||||||||
Non-employee director | Non-employee director | Non-employee director | |||||||||||||||||||
Stock options and stock award Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation costs | $16,194 | $17,717 | $15,861 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock authorized under stock-based compensation plans | 62,103 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | 20,000 | 20,000 | ' | ' | ' |
Shares of common stock reserved for the granting of stock options and other incentive awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000 | ' | ' | ' | ' | ' |
Shares of common stock available for grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 35,000 | 28,500 |
Term of options | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected stock price volatility (as a percent) | ' | ' | ' | ' | 85.00% | 85.00% | 79.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividend yield (as a percent) | ' | ' | ' | ' | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | ' | ' | ' | ' | 1.45% | 0.71% | 1.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected option life | ' | ' | ' | ' | '5 years 6 months | '5 years 6 months | '5 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional General Disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of options granted (in dollars per share) | ' | ' | ' | ' | $1.91 | $0.91 | $0.82 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from stock option exercises | ' | ' | ' | ' | 33,217 | 1,646 | 914 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax benefit from stock options | ' | ' | ' | ' | 23,660 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | 80,598 | 714 | 255 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of awards vested during the period | ' | ' | ' | ' | ' | ' | ' | 5,098 | 4,623 | 3,724 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | 81,000 | 73,798 | 74,298 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 4,828 | 12,020 | 23,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -26,873 | -1,535 | -896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | -2,989 | -3,283 | -22,804 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | ' | 55,966 | 81,000 | 73,798 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in shares) | ' | ' | ' | ' | 51,761 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | ' | 29,881 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | $1.48 | $1.52 | $2.47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $2.76 | $1.32 | $1.19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $1.24 | $1.06 | $1.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | ' | $2.46 | $2.08 | $4.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | $1.65 | $1.48 | $1.52 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period (in dollars per share) | ' | ' | ' | ' | $1.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | ' | $1.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | ' | '6 years 5 months 23 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period | ' | ' | ' | ' | '6 years 4 months 17 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | '5 years 3 months 7 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | ' | 276,320 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested or expected to vest at the end of the period | ' | ' | ' | ' | 254,692 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | ' | 143,971 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized pre-tax compensation costs related to unvested stock options and restricted stock grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized pre-tax compensation costs, net of forfeitures | ' | ' | ' | ' | $15,251 | ' | ' | $9,155 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period over which remaining share-based cost is expected to be recognized | ' | ' | ' | ' | '2 years 3 months 25 days | ' | ' | '1 year 9 months 25 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | 12,677 | 11,506 | 7,078 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | 2,743 | 5,450 | 8,525 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | -4,152 | -3,917 | -3,366 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | -1,212 | -362 | -731 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | 10,056 | 12,677 | 11,506 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $1.25 | $1.20 | $1.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $2.79 | $1.31 | $1.23 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $1.23 | $1.18 | $1.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $1.48 | $1.26 | $1.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $1.66 | $1.25 | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassifications_from_Accumul2
Reclassifications from Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Accumulated other comprehensive loss | ' | ' | ' |
Balance - beginning of period | ($61,369) | ($52,634) | ($30,142) |
Other comprehensive income before reclassifications | 19,211 | -13,767 | -24,984 |
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 4,824 | 5,032 | 2,492 |
Balance - end of period | -37,334 | -61,369 | -52,634 |
Defined benefit pension plans | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' |
Balance - beginning of period | -61,369 | -52,634 | -30,142 |
Other comprehensive income before reclassifications | 19,211 | -13,767 | -24,984 |
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 4,824 | 5,032 | 2,492 |
Balance - end of period | ($37,334) | ($61,369) | ($52,634) |
Reclassifications_from_Accumul3
Reclassifications from Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before income taxes | ($49,371) | ($72,936) | ($35,037) | ($92,874) | ($76,305) | ($62,648) | $41,631 | $89,817 | ($250,218) | ($7,505) | $392,257 |
Income tax benefit | -6,006 | 1,388 | 2,210 | 3,212 | -46,782 | 777 | -2,866 | -61,729 | 804 | -110,600 | -23,686 |
Net of income tax expense | -55,377 | -71,548 | -32,827 | -89,662 | -123,087 | -61,871 | 38,765 | 28,088 | -249,414 | -118,105 | 368,571 |
Defined benefit pension plans | Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -4,824 | -5,032 | -2,492 |
Net of income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -4,824 | -5,032 | -2,492 |
Defined benefit pension plans | Reclassification from accumulated other comprehensive loss | Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of unrecognized prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | -240 | -240 | -639 |
Amortization of unrecognized net loss | ' | ' | ' | ' | ' | ' | ' | ' | ($4,584) | ($4,792) | ($1,853) |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Defined Contribution Plans | ' | ' | ' |
Employer match of employee contributions up to 3% of pretax annual compensation to 401 (k) defined contribution plan (as a percent) | 100.00% | ' | ' |
Percentage of participant's pretax annual compensation matched 100% by employer | 3.00% | ' | ' |
Employer match of employee contributions of additional 2% of pretax annual compensation to 401 (k) defined contribution plan (as a percent) | 50.00% | ' | ' |
Percentage of participant's pretax annual compensation matched 50% by employer | 2.00% | ' | ' |
Total expense recognized for 401(k) defined contribution plans | $57,857 | $56,480 | $57,036 |
Vesting period | '5 years | ' | ' |
Expense recognized for supplemental retirement defined contribution plan | 11,531 | 7,469 | 4,582 |
Estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic pension expense | ' | ' | ' |
Net actuarial loss | 2,399 | ' | ' |
Prior service cost | 240 | ' | ' |
Asset allocations | ' | ' | ' |
Total (as a percent) | 100.00% | 100.00% | ' |
Target allocation of plan assets | ' | ' | ' |
Total (as a percent) | 100.00% | ' | ' |
Equity Securities | ' | ' | ' |
Asset allocations | ' | ' | ' |
Total (as a percent) | 62.00% | 60.00% | ' |
U.S. equities | ' | ' | ' |
Target allocation of plan assets | ' | ' | ' |
Total (as a percent) | 46.00% | ' | ' |
International equity | ' | ' | ' |
Target allocation of plan assets | ' | ' | ' |
Total (as a percent) | 16.00% | ' | ' |
Fixed Income | ' | ' | ' |
Asset allocations | ' | ' | ' |
Total (as a percent) | 38.00% | 40.00% | ' |
Target allocation of plan assets | ' | ' | ' |
Total (as a percent) | 38.00% | ' | ' |
Defined Benefit Pension Plan | ' | ' | ' |
Net periodic pension expense | ' | ' | ' |
Service cost | 3,341 | 2,908 | 2,988 |
Interest cost | 6,120 | 6,128 | 6,501 |
Expected return on plan assets | -6,738 | -6,719 | -6,192 |
Amortization of unrecognized prior service cost | 240 | 240 | 639 |
Amortization of unrecognized net loss (gain) | 4,935 | 3,926 | 2,435 |
Net pension expense (income) | 7,898 | 6,483 | 6,371 |
Other changes recognized in other comprehensive loss: | ' | ' | ' |
Unrecognized net (gain) loss arising during period | -18,860 | 12,901 | 24,664 |
Prior service cost arising during period | ' | ' | -275 |
Amortization of unrecognized prior service cost | -240 | -240 | -639 |
Amortization of unrecognized net (loss) gain | -4,935 | -3,926 | -2,435 |
Net amount recognized in other comprehensive loss | -24,035 | 8,735 | 21,315 |
Net amount recognized in pension expense and other comprehensive loss | -16,137 | 15,218 | 27,686 |
Change in benefit obligations: | ' | ' | ' |
Benefit obligation at end of prior year | 158,522 | 142,310 | ' |
Service cost | 3,341 | 2,908 | 2,988 |
Interest cost | 6,120 | 6,128 | 6,501 |
Distributions | -7,677 | -6,644 | ' |
Change due to change in assumptions | ' | 13,979 | ' |
Actuarial (gain) loss | -11,710 | -159 | ' |
Benefit obligation at end of year | 148,596 | 158,522 | 142,310 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 114,773 | 108,196 | ' |
Employer contributions | 8,000 | 5,583 | 14,878 |
Actual return on plan assets | 13,888 | 9,067 | ' |
Distributions (including expenses paid by the plan) | -7,677 | -8,073 | ' |
Fair value of plan assets at end of year | 128,984 | 114,773 | 108,196 |
Funded status | -19,612 | -43,749 | ' |
Amounts recognized in consolidated balance sheets consisted of: | ' | ' | ' |
Accrued pension liability | -19,612 | -43,749 | ' |
Net amount recognized | -19,612 | -43,749 | ' |
Amounts recognized in accumulated other comprehensive loss consist of: | ' | ' | ' |
Net actuarial loss | -35,348 | -59,143 | ' |
Prior service cost | -307 | -547 | ' |
Amount recognized | -35,655 | -59,690 | ' |
Estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic pension expense | ' | ' | ' |
Accumulated benefit obligation | 148,596 | 158,368 | ' |
Significant actuarial assumptions used for all defined benefit plans to determine the benefit obligation | ' | ' | ' |
Discount rate (as a percent) | 4.50% | 4.00% | 4.50% |
Rate of increase in future compensation levels (as a percent) | 4.50% | 4.50% | 5.00% |
Weighted average assumptions used to determine net cost | ' | ' | ' |
Discount rate (as a percent) | 4.00% | 4.50% | 5.50% |
Rate of increase in future compensation levels (as a percent) | 4.50% | 5.00% | 5.00% |
Expected long-term rate of return on plan assets (as a percent) | 7.75% | 7.75% | 7.75% |
Defined benefit plans estimated future employer contributions | ' | ' | ' |
Expected employer contribution during fiscal 2015 | 0 | ' | ' |
Nonqualified Executive Retirement Plan | ' | ' | ' |
Defined Benefit Plans | ' | ' | ' |
Defined benefit plans, annual benefit payment period | '15 years | ' | ' |
Net periodic pension expense | ' | ' | ' |
Service cost | ' | ' | 21 |
Interest cost | 541 | 616 | 771 |
Amortization of unrecognized net loss (gain) | -351 | 866 | -582 |
Net pension expense (income) | 190 | 1,482 | 210 |
Other changes recognized in other comprehensive loss: | ' | ' | ' |
Unrecognized net (gain) loss arising during period | -351 | 866 | 595 |
Amortization of unrecognized net (loss) gain | 351 | -866 | 582 |
Net amount recognized in other comprehensive loss | ' | ' | 1,177 |
Net amount recognized in pension expense and other comprehensive loss | 190 | 1,482 | 1,387 |
Change in benefit obligations: | ' | ' | ' |
Benefit obligation at end of prior year | 14,332 | 14,509 | ' |
Service cost | ' | ' | 21 |
Interest cost | 541 | 616 | 771 |
Distributions | -1,657 | -1,659 | ' |
Change due to change in assumptions | ' | 756 | ' |
Actuarial (gain) loss | -351 | 110 | ' |
Benefit obligation at end of year | 12,865 | 14,332 | 14,509 |
Change in plan assets: | ' | ' | ' |
Employer contributions | 1,655 | 1,659 | ' |
Distributions (including expenses paid by the plan) | -1,655 | -1,659 | ' |
Funded status | -12,865 | -14,331 | ' |
Amounts recognized in consolidated balance sheets consisted of: | ' | ' | ' |
Accrued pension liability | -12,865 | -14,331 | ' |
Net amount recognized | -12,865 | -14,331 | ' |
Estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic pension expense | ' | ' | ' |
Accumulated benefit obligation | 12,865 | 14,331 | ' |
Significant actuarial assumptions used for all defined benefit plans to determine the benefit obligation | ' | ' | ' |
Discount rate (as a percent) | 4.50% | 4.00% | 4.50% |
Rate of increase in future compensation levels (as a percent) | ' | ' | 3.00% |
Weighted average assumptions used to determine net cost | ' | ' | ' |
Discount rate (as a percent) | 4.00% | 4.50% | 5.50% |
Rate of increase in future compensation levels (as a percent) | ' | ' | 3.00% |
Defined benefit plans estimated future employer contributions | ' | ' | ' |
Expected employer contribution during fiscal 2015 | $1,722 | ' | ' |
Retirement_Plans_Details_2
Retirement Plans (Details 2) (Recurring, USD $) | Mar. 01, 2014 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Significant Observable Inputs (Level 2) | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | $128,985 | $114,773 |
Significant Observable Inputs (Level 2) | International equity | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 20,401 | 17,199 |
Significant Observable Inputs (Level 2) | Large Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 40,914 | 35,098 |
Significant Observable Inputs (Level 2) | Small-Mid Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 18,071 | ' |
Significant Observable Inputs (Level 2) | Mid Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | ' | 12,562 |
Significant Observable Inputs (Level 2) | Small Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | ' | 4,236 |
Significant Observable Inputs (Level 2) | Long Term Credit Bond Index | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 47,360 | 45,664 |
Significant Observable Inputs (Level 2) | Short Term Investments | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 2,239 | 14 |
Total | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 128,985 | 114,773 |
Total | International equity | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 20,401 | 17,199 |
Total | Large Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 40,914 | 35,098 |
Total | Small-Mid Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 18,071 | ' |
Total | Mid Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | ' | 12,562 |
Total | Small Cap | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | ' | 4,236 |
Total | Long Term Credit Bond Index | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | 47,360 | 45,664 |
Total | Short Term Investments | ' | ' |
Fair Value Measurements | ' | ' |
Total assets at fair value | $2,239 | $14 |
Retirement_Plans_Details_3
Retirement Plans (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Future benefit payments expected to be paid in Fiscal Year | ' | ' | ' |
Multiemployer plans total expenses recognized | $26,617 | $19,787 | $14,594 |
Defined Benefit Pension Plan | ' | ' | ' |
Future benefit payments expected to be paid in Fiscal Year | ' | ' | ' |
2015 | 7,378 | ' | ' |
2016 | 7,520 | ' | ' |
2017 | 7,687 | ' | ' |
2018 | 7,829 | ' | ' |
2019 | 8,068 | ' | ' |
2020 - 2024 | 42,793 | ' | ' |
Total | 81,275 | ' | ' |
Nonqualified Executive Retirement Plan | ' | ' | ' |
Future benefit payments expected to be paid in Fiscal Year | ' | ' | ' |
2015 | 1,722 | ' | ' |
2016 | 1,625 | ' | ' |
2017 | 1,599 | ' | ' |
2018 | 1,228 | ' | ' |
2019 | 1,204 | ' | ' |
2020 - 2024 | 4,424 | ' | ' |
Total | $11,802 | ' | ' |
Multiemployer_Plans_that_Provi2
Multiemployer Plans that Provide Pension Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | $26,617 | $19,787 | $14,594 |
Minimum | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Company listed in these plan's Forms 5500 as providing more than specified percentage of the total contributions (as a percent) | 5.00% | ' | ' |
1199 SEIU Health Care Employees Pension Fund | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | 14,093 | 9,830 | 9,156 |
Value of surcharge imposed | 0 | 0 | 0 |
Minimum funding requirements (as a percent) | 15.80% | ' | ' |
Southern California United Food and Commercial Workers Unions and Drug Employers Pension Fund | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | 6,476 | 3,416 | 459 |
Value of surcharge imposed | 0 | 0 | 0 |
Minimum funding requirements for pharmacists (in dollars per hour) | 1.242 | ' | ' |
Minimum funding requirements for non pharmacists (in dollars per hour) | 0.563 | ' | ' |
Northern California Pharmacists, Clerks and Drug Employers Pension Plan | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | 2,900 | 2,858 | 2,937 |
Value of surcharge imposed | 0 | 0 | 0 |
Minimum funding requirements (in dollars per hour) | 0.57 | ' | ' |
United Food and Commercial Workers Union-Employer Pension Fund | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | 629 | 559 | 529 |
Value of surcharge imposed | 0 | 0 | 0 |
Minimum funding requirements (in dollars per hour) | 1.49 | ' | ' |
United Food and Commercial Workers Union Local 880 - Mercantile Employers Joint Pension Fund | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | 441 | 399 | 322 |
Value of surcharge imposed | 0 | 0 | 0 |
Minimum funding requirements (in dollars per hour) | 1.52 | ' | ' |
Other Funds | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Contributions by employer | 2,078 | 2,725 | 1,191 |
Central Ohio Locals 1059 and 75 | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Withdrawal liability incurred | 1,000 | 3,000 | ' |
1360 New Jersey Pension | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Withdrawal liability incurred | ' | 2,032 | ' |
NW OH Pension Fund | ' | ' | ' |
Multiemployer Plans that Provide Pension Benefits | ' | ' | ' |
Withdrawal liability incurred | ' | ' | $1,300 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Guarantees (Details) (Indergit) | Mar. 01, 2014 |
StoreManager | |
Indergit | ' |
Commitments and contingencies | ' |
Number of current and former store managers court ordered notices to be sent | 7,000 |
Number of current and former store managers who joined the action | 1,550 |
Number of current and former store managers to whom notices will be sent after the Court approval | 1,750 |
Supplementary_Cash_Flow_Data_D
Supplementary Cash Flow Data (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Supplementary Cash Flow Data | ' | ' | ' |
Cash paid for interest (net of capitalized amounts of $197, $399 and $315) | $414,692 | $482,145 | $528,894 |
Capitalized amount of interest | 197 | 399 | 315 |
Cash payments (refund) for income taxes, net | 3,191 | -776 | 4,913 |
Equipment financed under capital leases | 18,065 | 7,906 | 7,052 |
Equipment received for noncash consideration | 2,825 | 3,285 | 3,616 |
Preferred stock dividends paid in additional shares | 8,318 | 10,528 | 9,919 |
Accrued capital expenditures | 72,841 | 45,456 | 45,454 |
Gross borrowings from revolver | 2,668,000 | 1,117,000 | 2,654,000 |
Gross repayments to revolver | $2,933,000 | $588,000 | $2,546,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Sep. 30, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Sep. 30, 2013 | Mar. 01, 2014 | Mar. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 22, 2013 | Mar. 03, 2012 | |
Common Stock | Series G preferred stock | Series G preferred stock | Series G preferred stock | Series H preferred stock | Series H preferred stock | Series H preferred stock | Preferred Stock (Series G and H) | Green Equity Investors III, L.P. ("LGP") | Green Equity Investors III, L.P. ("LGP") | Green Equity Investors III, L.P. ("LGP") | Green Equity Investors III, L.P. ("LGP") | Jean Coutu Group | Leonard Green & Partners, L. P. | ||||
Common Stock | Series G preferred stock | Series H preferred stock | Preferred Stock (Series G and H) | ||||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from related parties | ' | $19,000 | $23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,401,162 | ' |
Number of shares agreed to be exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 1,876,013 | ' | ' | ' |
Quarterly dividend (as a percent) | ' | ' | ' | ' | 7.00% | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued upon redemption of preferred stock (in shares) | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | -1,904,000 | ' | ' | 40,000,000 | ' | ' | ' | ' | ' |
Par value of common stock (in dollars per share) | $1 | $1 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of common stock issued upon redemption of preferred stock | ' | ' | ' | 40,000,000 | ' | -1,000 | ' | ' | -190,415,000 | ' | ' | 190,400,000 | ' | ' | ' | ' | ' |
Closing price per share (in dollars per share) | $4.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption percentage of the liquidation preference per share | 105.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidation preference (in dollars per share) | $100 | ' | ' | ' | $100 | $100 | $100 | ' | $100 | $100 | ' | ' | ' | ' | ' | ' | ' |
Liquidation preference | 199,937,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 1,904,161 | ' | ' |
Contracted conversion rate (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | ' | ' | ' |
Shares of earned and unpaid dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,140 | ' | ' |
Total common stock shares issuable at contracted conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,621,117 | ' | ' |
Conversion of Series G and H preferred stock | 25,603,000 | 25,603,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,603,000 | ' | ' |
Diluted earning per share due to conversion of preferred stock (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.03 | ' | ' |
Additional common stock issued upon redemption of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,378,883 | ' | ' |
Monthly fee that was payable for consulting services which have been terminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,500 |
Expenses for services provided | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000 |
Expense reimbursement included in the fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $67,000 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Events, USD $) | 0 Months Ended | ||
In Millions, unless otherwise specified | Apr. 10, 2014 | Apr. 01, 2014 | Apr. 10, 2014 |
Health Dialog | RediClinic | ||
clinic | |||
Subsequent Events | ' | ' | ' |
Ownership (as a percent) | ' | 100.00% | 100.00% |
Number of retail clinics operated | ' | ' | 30 |
Combined amount paid for entities acquired | $86 | ' | ' |
Assumed debt related to entities acquired | $2.50 | ' | ' |
Interim_Financial_Results_Unau2
Interim Financial Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Mar. 02, 2013 | Dec. 01, 2012 | Sep. 01, 2012 | Jun. 02, 2012 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Interim Financial Results (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $6,597,459 | $6,357,732 | $6,278,165 | $6,293,057 | $6,455,245 | $6,237,847 | $6,230,884 | $6,468,287 | $25,526,413 | $25,392,263 | $26,121,222 |
Cost of goods sold | 4,711,743 | 4,557,066 | 4,461,804 | 4,472,066 | 4,407,482 | 4,426,526 | 4,520,463 | 4,719,516 | 18,202,679 | 18,073,987 | 19,327,887 |
Selling, general and administrative expenses | 1,716,671 | 1,632,299 | 1,602,931 | 1,609,261 | 1,682,332 | 1,612,198 | 1,618,169 | 1,688,066 | 6,561,162 | 6,600,765 | 6,531,411 |
Lease termination and impairment charges | 17,270 | 1,672 | 11,390 | 10,972 | 36,567 | 14,366 | 7,783 | 12,143 | 41,304 | 70,859 | 100,053 |
Interest expense | 101,992 | 102,819 | 106,716 | 113,064 | 127,408 | 128,371 | 129,054 | 130,588 | 424,591 | 515,421 | 529,255 |
Loss on debt retirements, net | ' | 271 | 62,172 | ' | 122,660 | ' | ' | 17,842 | 62,443 | 140,502 | 33,576 |
(Gain) loss on sale of assets, net | 412 | -9,331 | -1,885 | -5,180 | 2,491 | -6,262 | -2,954 | -10,051 | -15,984 | -16,776 | -8,703 |
Total costs and expenses | 6,548,088 | 6,284,796 | 6,243,128 | 6,200,183 | 6,378,940 | 6,175,199 | 6,272,515 | 6,558,104 | 25,276,195 | 25,384,758 | 26,513,479 |
Income (loss) before income taxes | 49,371 | 72,936 | 35,037 | 92,874 | 76,305 | 62,648 | -41,631 | -89,817 | 250,218 | 7,505 | -392,257 |
Income tax expense (benefit) | -6,006 | 1,388 | 2,210 | 3,212 | -46,782 | 777 | -2,866 | -61,729 | 804 | -110,600 | -23,686 |
Net income (loss) | 55,377 | 71,548 | 32,827 | 89,662 | 123,087 | 61,871 | -38,765 | -28,088 | 249,414 | 118,105 | -368,571 |
Basic (loss) income per share (in dollars per share) | $0.06 | $0.05 | $0.03 | $0.10 | $0.14 | $0.07 | ($0.05) | ($0.03) | $0.23 | $0.12 | ($0.43) |
Diluted (loss) income per share (in dollars per share) | $0.06 | $0.04 | $0.03 | $0.09 | $0.13 | $0.07 | ($0.05) | ($0.03) | $0.23 | $0.12 | ($0.43) |
Facilities impairment charges | 7,877 | ' | ' | ' | 24,012 | ' | ' | ' | ' | ' | ' |
LIFO charge (credit) | $44,142 | ' | ' | ' | ($175,384) | ' | ' | ' | $104,142 | ($147,882) | $188,722 |
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 01, 2014 | Mar. 02, 2013 |
Carrying Amount | Carrying Amount | Fair Value | Fair Value | ||
Financial instruments | ' | ' | ' | ' | ' |
Variable rate indebtedness | ' | $2,522,293 | $2,296,001 | $2,524,508 | $2,275,694 |
Fixed rate indebtedness | ' | $3,127,439 | $3,622,351 | $3,569,777 | $3,912,903 |
Reference rate for borrowings under the credit facilities | 'LIBOR | ' | ' | ' | ' |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowances deducted from accounts receivable for estimated uncollectible amounts:, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2014 | Mar. 02, 2013 | Mar. 03, 2012 |
Allowances deducted from accounts receivable for estimated uncollectible amounts: | ' | ' | ' |
Allowances deducted from accounts receivable for estimated uncollectible amounts: | ' | ' | ' |
Balance at Beginning of Period | $28,271 | $28,832 | $25,116 |
Additions Charged to Costs and Expenses | 43,524 | 36,397 | 18,274 |
Deductions | 44,922 | 36,958 | 14,558 |
Balance at End of Period | $26,873 | $28,271 | $28,832 |